Mt. Gox creditors report Bitcoin balances on Kraken

Kraken has started distributing Bitcoin received from the Mt. Gox Trustee on July 16.

Creditors of the defunct Bitcoin (BTC) exchange Mt. Gox reported seeing crypto balances on the Kraken platform, as impacted users saw relief 10 years after a historical hack. The news was confirmed on Reddit via a subreddit called “mtgoxinsolvency.”

Several users believed to be Mt. Gox claimants were seen verifying the update. Some also reported receiving Bitcoin Cash (BCH) tokens. 

Per crypto.news, Kraken had promised to disburse funds to creditors within seven to 14 days. This came after Mt. Gox moved about $6 billion in crypto to several addresses. Users also noted “brute force” attacks on accounts, indicating that bad actors attempted to steal relief assets.

On July 23, Arkham also noted that the bankrupt BTC exchange sent $2.85 to four Bitstamp wallets. On-chain data showed transfers of 1598 BTC ($106.3 million), 382.4 BTC ($25.4 million), 2239 BTC ($149.1 million), and 890.9 BTC ($59.3 million), respectively. It is unknown whether Bitstamp will stick to the same two-week distribution window as Kraken.

Will Mt. Gox creditors sell their Bitcoin?

Based in Shibuya, Tokyo, Mt. Gox was hacked six times between 2011 and 2014, and hackers stole over 850,000 BTC. The incident is still one of the largest crypto hacks in history, and the haul is currently valued at more than $60 billion. 

At least $9 billion is owed to creditors, and market observers hold different opinions regarding whether creditors will sell. If users decide to offload BTC tokens, BTC may experience sell pressure. As of this writing, the token traded down 2.3% and cost about $65,800 per token.