MtGox Trustee States Creditor Repayment Has Made Significant Progress

News and Analysis

Kraken, a cryptocurrency exchange assisting the trustee for MtGox collapse investigation, has released a statement on his behalf, noting that reviewing of claims from the defunct exchange’s customers has made a significant progress.

MtGox halted operations in February 2014, when then-CEO Mark Karpeles stated the exchange had suffered from a hacker attack resulting in theft of bitcoins. However, according to last year’s report compiled by a group of independent experts, the bitcoins in question have vanished long before MtGox’s collapse, sometime between 2011 and 2013.

Karpeles himself was charged with misappropriation of customer funds. Prior to that, following MtGox bankruptcy claim, a legal process for repaying the customers was launched. The trustee selected Kraken to reimburse the credit. The exchange also acts as collector of claims, and assists Nobuaki Kobayashi, the head of the trustee committee assigned by the court of Tokyo.

Kraken, referencing to Kobayashi’s statement, has now revealed new details of the case.

Thus, according to the trustee’s data, overall amount of lost bitcoin deposits claimed by the creditors are roughly equivalent to $350 million. 7,952 claims for $110 million overall have been already reviewed and resolved, with 1,911 claims for $241 million pending.

Apart from bitcoins, many customers deposited significant amounts of fiat money as well. Cumulative cost of both kinds of deposits is currently estimated at $2.3 billion. Presently, for the fiat part only, claims for $225 million overall have been reviewed and resolved either way.

The exchange rate for calculating the bitcoins worth, is set at $483 for one bitcoin referencing to CoinDest index at 11.59 p.m. on April 23, 2014, immediately before MtGox’s official bankruptcy filing.

Nobuaki Kobayashi’s statement reads:

“Although the investigation into MtGox claims is still ongoing, we have made significant progress for creditors.”

The trustee also said that Mark Karpeles, detained in Japan last autumn, is still being under arrest and cooperates with the police on the exchange’s collapse investigation.

“As matters now stand, investigations are underway, including investigations as to whether there are discrepancies between the activities of BTC on the database, which we are aware of at this time, and the records on the blockchain,” he added.

Found a typo? Highlight text and press CTRL+ENTER

Subscribe to our Newsletter


Related posts

Tags: ,