Kraken Selected for MtGox Investigation

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Kraken Bitcoin Exchange
Kraken Bitcoin Exchange

Bitcoin exchange Kraken has been selected to aid in the investigation of missing Bitcoin following the heist at the Mt Gox exchange. Kraken will also be involved in the distribution of remaining assets to the creditors.

This decision was arrived at after an extensive evaluation process where multiple companies were considered and vetted. Kraken stood out for several reasons, chief among them being its proven track record in managing its exchange. The company has demonstrated stability and reliability in customer support. It also possesses sufficient expertise to enable it carry out investigations on how the bitcoins at the MtGox exchange were lost, and how to distribute the remaining assets.

In addition to the above, Kraken has been tasked to create a system that would be used in filing claims and following through with investigations, and exchange between bitcoin and fiat money. Creditors will be required to create Kraken accounts through which Kraken in its role as a trustee will be able to distribute bitcoin. The company is further urging creditors to open accounts as soon as possible. This is to avoid any delays that are anticipated due to the increased number of sign-ups. There are also verification processes that are required of all users. Creditors can sign up at https://www.kraken.com/signup.

MtGox Proceedings to Affect Bitcoin Community

MtGoxKraken is aware of the huge implications that the MtGox proceedings will have on the bitcoin community. According to the Jesse Powell, Kraken CEO, “The outcome of the MtGox bankruptcy proceedings will deeply affect the Bitcoin community as a whole.

He added that they had decided to volunteer their resources and expertise “in an attempt to minimize damage to creditors, restore faith in the Bitcoin community, and demonstrate trusted leadership in the industry,” Powell said.

Earlier in the year 2014, CCN reported on the problems that MtGox was experiencing. In April 2014, protestors gathered outside MtGox demanding refunds after it turned out that the bitcoin exchange was insolvent. MtGox’s problems that week saw other bitcoin exchanges issuing a joint statement so as to calm nerves. As a result of MtGox’s problems, bitcoin prices fell sharply and struggled to recover ever since.

Also read: The Epic Fall of MtGox: The Increasingly Illiquid Bitcoin Exchange

What do you think of this new development in the MtGox investigation? Comment below!

Images from Kraken, MtGox and Shutterstock.

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John Weru is a Kenya-born writer who has been writing since his teenage years. He believes that digital currencies hold the key to unlocking the potential of e-commerce and m-commerce globally, and powering Africa's participation in international trade.