Kraken Exchange Under Fire As Some Mt Gox Creditors Complain

Kraken, a prominent crypto exchange, is facing backlash from a section of Mt Gox creditors. These creditors claim they have not received their Bitcoin (BTC) repayments, despite assurances that funds were being distributed. This situation has sparked significant frustration among affected users, many of whom have taken to the insolvency subreddit to voice their grievances and seek clarity.

Kraken Fails To Deliver Bitcoin Payments

A recent post on the subreddit highlights the issue: “It appears there are a few of us who have approved linked Kraken accounts and are approved creditors, but have yet to receive BTC payment.” The original poster further detailed their communication efforts with Kraken and the Mt Gox trustee, both of which have been unfruitful. They added:

“I have been in touch with Kraken support, but they have simply directed me to contact the trustee. The trustee only provides generic ‘we can’t provide individual advice’ feedback.”

In addition, the user criticized Kraken for its lack of proactive communication and support. Moreover, they suggested that Kraken should utilize its direct channel to Mt Gox to obtain and disseminate general information about the delays. The user noted:

“Kraken Support If You’re Reading This: Do Better: In my opinion, as Kraken knows which of their accounts are linked to Mt Gox, and which have been paid and not paid, they should use their direct channel to Mt Gox to get general info as to why these accounts have not been paid yet!”

This sentiment is echoed by several other users on the subreddit who have reported similar issues. One user replied, “Same here! No cash, no emails about Kraken, no BTC. Kraken say contact trustees. Trustees say And, if it is marked as ‘Incomplete’, it means that the repayment is being prepared for remittance. and of course ‘we can’t provide individual advice.'”

Another user highlighted that Kraken hasn’t even intimated updates regarding the Mt. Gox repayment via emails. They added, “Same issue, no emails from Kraken and a fob off about the specialized team contacting which they haven’t that was 7 days ago. I received the cash balance some months ago, but no BTC received.”

Despite these complaints, there have been reports that many creditors have received their payments. On July 23, discussions on Reddit suggested that the majority of Mt. Gox creditors linked to the Kraken exchange confirmed they had received their funds. Hence, this indicates that while the distribution process is underway, there are still unresolved cases causing significant concern.

Also Read: Bitcoin Under Pressure With Mt. Gox Distribution, Key Levels to Watch

Lack Of Communication

Further compounding the frustration is the lack of detailed communication from both Kraken and the Mt Gox trustee. The original poster noted the receipt of two key emails. These include one from Kraken on February 15, 2024, titled “Confirmation and Next Steps – Your Account is in Good Standing [Upcoming Mt. Gox Distribution]” and another from Mt Gox on March 8, 2024, confirming account ownership.

However, a crucial follow-up email in July, confirming the successful receipt of creditor funds by the Kraken exchange, was missing for some users. This has led to confusion and uncertainty about the status of their claims. Furthermore, a user even highlighted that they are yet to receive the initial cash payments alloted for the Mt Gox reimbursement.

Mt. Gox BTC Transfers

Meanwhile, the market has witnessed significant movements of Bitcoin linked to Mt Gox. On July 23, Arkham Intelligence reported that a Mt Gox-labeled wallet sent about 42,587.49 BTC worth $2.8 billion to an unknown wallet. In addition, another substantial transfer today involved 37.477K BTC to a new unknown wallet address, valued at $2.47 billion.

These large-scale transfers add another layer of complexity to the ongoing distribution process. These transfers indicate that the remaining creditors may receive their Bitcoin repayments soon. Moreover, on Monday, Bitstamp also received 2,238 BTC worth over $147 million and creditors have suggested no complaints regarding the payout. Hence, the Kraken crypto exchange could also tap into a similar strategy and address the issues.

Also Read: Just-In: Kraken Begins Distributing Mt Gox Creditors In Bitcoin