Following the recent distribution from the Kraken exchange, Mt. Gox creditors are now expected to receive the final batch of their long-awaited funds.
Earlier today, Bitstamp, a popular digital currency exchange, announcement It will distribute the next batch of Bitcoin, Bitcoin Cash and Ethereum to the relevant parties.
The payment process continues
Bitstamp, one of the oldest cryptocurrency exchanges, has revealed that it will soon begin paying out digital assets to creditors of the defunct exchange Mt. Gox.
On Wednesday, Bitstamp confirmed receipt of significant amounts of BitcoinBitcoin Cash and Ethereum from Mt. Gox trustees. Distribution to eligible Bitstamp account holders will begin on Thursday, July 25.
The distribution represents a key step in unwinding what remains after the 2014 collapse of Mt. Gox, which led to thousands of customers being denied access to their tokens. Now, those users will have the opportunity to receive a restitution share which consists of billions of digital assets.
Bitstamp has committed to distributing funds responsibly, with a focus on security and order. In a social media notice, the exchange emphasized its commitment to carefully reviewing all transfers for security implications. The post noted:
We are pleased to announce that we have received the assets from Mt. Gox. We are working diligently to distribute them to our Bitstamp customers who are creditors of Mt. Gox. Please allow up to a week for security checks. We will notify you when the transfer is complete. Thank you for your patience and trust.
The exchange too mentioned a tailored distribution plan for UK residents, promising to keep them informed and ensure they receive their assets promptly.
Recent Distribution Update
In the meantime, Kraken appears to have distributed all crypto assets received from Mt. Gox to creditors.
1/ @krakenfx successfully distributed #Bitcoin and Bitcoin Cash from @mtgox the estate goes to the creditors.
It has been almost ten years since Kraken was selected by the trustee to facilitate the investigation and return of customer funds. It was our privilege and our duty. pic.twitter.com/ptKexzN4gm
— Dave Ripley (@DavidLRipley) July 23, 2024
Before the distribution began, many expected a a handful of creditors to collect the distributed funds, thus negatively impacting the cryptocurrency market, particularly that of Bitcoin. However, contrary to these expectations, the data show that creditors were interested in retention rather than sale.
CryptoQuant CEO Ki Young Ju, in particular reported:
Mt. Gox creditors received bitcoin 4 hours ago. There has been no significant spike in hourly spot trading volume dominance or BTC outflows on Kraken since then.
Ju mentioned that this appears to be a “positive sign,” although he noted, “We have to wait for the Asian time zone.”
Adding to this “positive” sentiment, a CryptoQuant analyst has reported that there has been a significant increase in BTC Kraken withdrawals following the payment, indicating that creditors “are not selling and are preparing to hold their coins, moving them from the exchange to cold wallets.”
Featured image created with DALL-E, chart by TradingView
