Mt. Gox Creditors Get Bitcoin Payments from Kraken as BTC Loses Some Momentum

Highlights:

• Mt. Gox creditors confirm receipt of payments from Kraken.
• Bitstamp and BitGo have not redistributed users’ tokens, as BitGo became the only exchange that has not received Mt. Gox payment.
• Bitcoin price drops slightly and could recover with time.

Mt. Gox creditors are basking in reimbursement euphoria after ten years of losing substantial funds in the Japanese exchange implosion. The latest batch of creditors that received payment are those scheduled to get their payments from Kraken.

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

Mt. Gox Creditors Repayment Plans and Exchanges Roles

For context, exchanges, including Kraken, Bitstamp, BitGo, SBI VC Trade, and Bitbank, have been tasked to assist in Mt. Gox repayment plans. Consequently, some of these selected exchanges have received payment, which they must redistribute to affected creditors.

Among the five trading platforms highlighted above, only BitGO has not received BTC payments from Mt. Gox. On the other hand, only SBI VC Trade, Bitbank, and recently Kraken have redistributed the funds to creditors.

Notedly, SBI VC Trade and Bitbank received 47.23K Bitcoin worth roughly $2.71 billion from Mt. Gox on July 5, 2024. The two Japanese exchanges have redistributed the tokens to creditors within hours, less than the agreed two-week timeframe. On July 16, Kraken received 48.64K BTC worth approximately $3.1 billion. Unlike SBI VC Trade and Bitbank, Kraken recently began token redistribution, implying that the exchange took days before eliciting repayments.

Meanwhile, Bitstamp just received its share of BTC yesterday, July 23. Per reports, Bitstamp received 5,109 BTC, valued at about $340 million. Hence, it should not be surprising that Bitstamp has not yet redistributed the tokens in its custody.

Kraken Users Confirms Payment Recipients on X and Reddit

Taking to various social media platforms, especially X and Reddit, Kraken users have been confirming token redistribution by the exchange. In a Reddit post captioned, “Kraken BTC arrived,” several users commented under the post, corroborating the poster’s claims. When drafting this report, the post had 346 upvotes, zero downvotes, and 277 comments.

A Reddit user commented, “Damn! Not a huge sum in the grand scheme of things for me, but more than I thought, and incredible to think that a short period of experimenting with mining has brought me a nice windfall ten years later. If Mt. Gox did not collapse when it did, I would have spent that coin.”

While most Reddit users appear to share a similar sentiment to the one above, some are still in awe. Considering the time frame between the collapse and Mt. Gox creditors’ reimbursement, most affected investors have lost hope and probably moved on.

Meanwhile, the atmosphere on X was not different from that on Reddit. A verified X user wrote, “Just received my Mt.Gox coins and have sold BCH for BTC, as is tradition. After the conversion, the final figure was 16.3% of my original BTC. Congratulations to all the Goxxers who’ve finally received their coins.”

Just received my Mt.Gox coins, and have sold BCH for #BTC, as is tradition.

After the cash and BCH was converted into BTC, the final figure is 16.3% of my original BTC.

Congratulations to all the Goxxers who've finally received their coins.

— spoonman (@spoonmvn) July 23, 2024

How Has BTC’s Price Reacted?

At the time of press, Bitcoin (BTC) is changing hands at about $65,800, following a 1.4% decline in the past 24 hours. In its 7-day-to-date variable, Bitcoin recorded a slight 0.2% upswing with minimum and maximum prices ranging between $63,565.53 and $68,175.02.

Considering Bitcoin’s current price, the changes in BTC’s 7-day-date data imply a relatively fair decline. Hence, it becomes safe to say that the price drop could be a slight correction that could still bounce back with time.