Kraken confirms receipt of Mt. Gox Bitcoin distribution

Kraken has confirmed the successful receipt of bitcoin and bitcoin cash from the Mt. Gox trustee, marking a significant milestone in the long-running saga of the defunct exchange’s rehabilitation process.

In an email to creditors, Kraken stated: “We have successfully received creditor funds (BTC and BCH) from the Mt. Gox Trustee. While we will work to distribute funds as quickly as possible, please anticipate 7-14 days for funds to be credited to your account.”

The announcement follows the recent movement of approximately 47,000 Bitcoin from Mt. Gox addresses to two new addresses. One of these addresses, containing 48,000 bitcoin, is believed to belong to Kraken due to its SegWit (Segregated Witness) format. The ownership of the second address remains unclear.

The distributions, which were confirmed earlier this month, comes after years of legal proceedings and negotiations following the collapse of Mt. Gox in 2014. At its peak, the Tokyo-based exchange handled over 70% of all Bitcoin transactions globally. Its abrupt closure sent shockwaves through the nascent crypto market, causing Bitcoin prices to plummet to a local low of $420.

In May 2024, Mt. Gox transferred 141,686 BTC, worth $9.62 billion, to a new wallet address. This move, confirmed by rehabilitation trustee Nobuaki Kobayashi, was part of the repayment preparation process and marked the first on-chain activity from the exchange in over five years.

As Kraken begins the process of crediting user accounts, it brings a measure of closure to one of the industry’s most notorious incidents, potentially restoring some faith in the broader crypto ecosystem.