Highlights:
- Bitstamp starts distributing Bitcoin, Bitcoin Cash, and Ethereum to Mt. Gox creditors on July 25, 2024.
- Approximately 20,000 former Mt. Gox users to receive over $9 billion in restored digital assets.
- UK customers are to receive their share of Mt. Gox assets in the following months, post-initial distribution.
Bitstamp is set to begin distributing digital assets to Mt. Gox creditors starting Thursday, marking a significant step in the lengthy restitution process for those affected by the exchange’s 2014 collapse. Bitstamp received Bitcoin, Bitcoin Cash, and Ethereum from Mt. Gox trustees on Wednesday and will commence distribution tomorrow.
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Distribution Process
Bitstamp will distribute the assets to customers who choose Bitstamp as their exchange. The digital assets received from Mt. Gox trustees include Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH). Recipients will gain full control of their assets within a week following security checks. However, UK customers will be part of a separate distribution plan and will receive their assets in the coming months.
We're pleased to announce that we've received the Mt. Gox assets. We're working diligently to distribute them to our Bitstamp customers who are Mt. Gox creditors. Please allow up to one week for security checks. We'll inform you when the transfer is finalized. Thank you for your…
— Bitstamp (@Bitstamp) July 24, 2024
The process comes a decade after Mt. Gox, once the largest Bitcoin exchange, collapsed following a major hacking incident. In 2014, customers lost their funds when hackers stole approximately 850,000 Bitcoins from the exchange. Today, with Bitcoin trading around $51,000 per coin, many creditors will realize substantial profits.
Impact on Crypto Markets
The distribution of nearly $9 billion worth of assets concerns crypto markets, as investors worry about the potential market impact if creditors sell their reclaimed assets. Despite these concerns, the distribution process is finally underway, bringing closure to a decade-long wait for many Mt. Gox creditors.
Bitstamp, known for its stringent security measures and regulatory compliance, is crucial in this restitution process. Jean-Baptiste Graftieaux, Bitstamp’s Global Chief Executive Officer, emphasized the importance of choosing secure and compliant exchanges, noting that while investing in cryptocurrency carries risks, careful selection of exchanges can lead to significant gains.
Mt. Gox’s Legacy
Mt. Gox was a Tokyo-based cryptocurrency exchange operating between 2010 and 2014. At its peak, it handled over 70% of Bitcoin transactions. In February 2014, the exchange suspended withdrawals due to suspicious activity in its digital wallets and subsequently filed for bankruptcy. After a prolonged bankruptcy, the retrieval of approximately 140,000 Bitcoins has allowed former customers to now receive their funds.
Bitstamp, among five exchanges, was selected to distribute Bitcoin to over 20,000 former Mt. Gox customers as part of the repayment process. Other participating exchanges include Kraken, Bitbank, SBI VC Trade, and BitGo. Kraken recently announced it had successfully distributed Bitcoin and Bitcoin Cash to its customers.
Kraken Distributes Mt. Gox Assets to Creditors
Today, Kraken successfully completed the long-awaited distribution of Bitcoin and Bitcoin Cash to the creditors of the defunct Mt. Gox exchange. For nearly ten years, Mt. Gox Trustee tasked Kraken with aiding in the investigation and facilitating the return of client funds, and this significant milestone has been reached.
1/ @krakenfx has successfully distributed #Bitcoin and Bitcoin Cash from the @mtgox estate back to creditors.
It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds. It was our privilege and it was our duty. pic.twitter.com/ptKexzN4gm
— Dave Ripley (@DavidLRipley) July 23, 2024
Despite numerous legal obstacles that delayed the process, Kraken’s steadfast commitment to preserving the value of the held assets has been pivotal. The Trustee’s decision to maintain most of the Bitcoin holdings over the years has now culminated in a substantial preservation of value, greatly benefiting the creditors.
As Kraken approaches its 13th anniversary, this accomplishment underscores the exchange’s dedication to its mission of fostering financial freedom, security, and inclusivity. Jesse Powell, one of the industry’s pioneers, has played a crucial role in steering the firm towards these goals.
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