Kraken Makes Progress in MtGox Investigation with $110 million of BTC Claims Approved

Digital currency exchange Kraken reports that significant progress has been made in the claims investigation from creditors of MtGox, a major bitcoin exchange that collapsed in 2014 under shady circumstances.

In November 2014, Kraken was selected to assist Tokyo District Court-appointed Trustee Nobuaki Kobayashi in the bankruptcy investigation of missing bitcoin, receiving claims and distributing remaining assets to creditors of MtGox. The Trustee on Wednesday provided an update on the claims investigtion at a scheduled Creditor’s Meeting in Tokyo.

Of the 9,863 persons who filed bitcoin-only claims through the Japanese Trustee or through Kraken’s online service, 7,952 claimants have been approved. JPY 12,583,717,791 in bitcoin has been approved to creditors, with JPY 27,547,026,403 in bitcoin on hold.

Kraken states that claimants can examine their claims by visiting the MtGox website at the following link: https://claims.mtgox.com/assets/index.html. Creditors wanting to receive their claims in bitcoin must register an account with Kraken at Kraken.com.

According to today’s report, 24,733 people around the world have filed bankruptcy claims related to the MtGox exchange. The total amount of bankruptcy claims filed in both bitcoin and fiat currencies are 2,695,239,249,594 JPY. The Trustee is currently in possession of 202,163.41191816 bitcoin, currently more than US$84 million.

Kraken CEO Jesse Powell added:

“Continued progress in the MtGox bankruptcy proceedings will have beneficial effects for the bitcoin community globally. Kraken is proud to volunteer our resources and expertise in an attempt to minimize damage to creditors, restore faith in the bitcoin community, and demonstrate trusted leadership in the industry.”

Launched in 2010, MtGox was one of the first bitcoin exchanges and by 2013 was handling 70% of global bitcoin transactions. In early 2014, the exchange company suspended trading and declared bankruptcy. Within a few months, the company announced that 850,000 bitcoins owned by customers and the company itself were missing or stolen. Independent bitcoin security firm, WizSec, determined that “Most or all of the missing bitcoins were stolen straight out of the MtGox hot wallet over time, beginning in late 2011.” Kraken opened a local bitcoin exchange in Japan in October 2014.