Following the recent distribution by Kraken exchange, Mt. Gox creditors are now set to receive the final batch of long-awaited funds.
This morning, Bitstamp, a well-known digital currency exchange, announced will distribute another batch of Bitcoin, Bitcoin Cash, and Ethereum to affected people.
The withdrawal process is ongoing
Bitstamp, a platform that is among the oldest in the cryptocurrency exchange sphere, has revealed that it will soon begin paying out digital assets to creditors of the shuttered Mt. Gox exchange.
On Wednesday, Bitstamp confirmed it had received significant amounts of Bitcoin, Bitcoin Cash, and Ethereum from Mt. Gox custodians. Distribution to eligible Bitstamp account holders will begin on Thursday, July 25.
The distribution is a key step in undoing what remains of the 2014 collapse of Mt. Gox, which led to thousands of customers being denied access to tokens. Now, those users will have the opportunity to receive a share of the compensation, which consists of billions in digital assets.
Bitstamp has pledged to allocate funds responsibly, with a focus on security and order. In a social media announcement, the exchange emphasized its commitment to carefully vetting all transfers for security implications. The post noted:
We are pleased to announce that we have received the Mt. Gox assets. We are working diligently to distribute them to our Bitstamp customers who are creditors of Mt. Gox. Please allow up to one week for security checks. We will inform you once the transfer is complete. Thank you for your patience and trust.
The stock exchange too mentioned a tailored distribution plan for UK residents, ensuring they are kept informed and receive their assets promptly.
Update on the latest distribution
Meanwhile, Kraken has apparently distributed all crypto assets received from Mt. Gox to creditors.
1/ @krakenfx successfully distributed #Bitcoin and Bitcoin Cash with @mtgox return of property to creditors.
It has been almost a decade 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Before the distribution began, many expected a handful creditors may withdraw the withdrawn funds, which will negatively affect the cryptocurrency market, especially Bitcoin. However, contrary to these expectations, the data shows that creditors were interested in holding on, not selling.
CryptoQuant CEO Ki Newborn Ju especially reported:
Mt. Gox creditors received Bitcoin 4 hours ago. Since then, there has been no significant escalate in hourly spot trading volume dominance or BTC outflows on Kraken.
Ju mentioned that this seems like a “positive sign,” though he noted, “We have to wait for the Asian time zone.”
The CryptoQuant analyst added to this “positive” sentiment: reported that there was a significant escalate in BTC withdrawals from Kraken following the payout, indicating that creditors “are not selling and are preparing to hold on to their coins by moving them from the exchange to cold wallets.”
Featured image created with DALL-E, chart from TradingView
