Kraken Halts Mt Gox Repayment Process for Creditors

Kraken, one of the leading cryptocurrency exchanges, has recently declined to process Bitcoin (BTC) repayments for Mt. Gox creditors, citing insufficient verification levels for the affected individuals. According to reports, Kraken’s decision has sparked considerable controversy and backlash within the cryptocurrency community.

Kraken Claims Creditors Did Not Meet Verification Standards

As earlier reported by TheCoinRise, the rehabilitation creditors would receive their repayments promptly once several conditions are met. These conditions include confirming the accounts’ validity and securing creditors’ acceptance of the intent to subscribe to the Agency Receipt Agreement via designated exchanges.

The exchange maintained that the affected creditors did not meet the necessary standards of verification, which are crucial for compliance with regulatory requirements and to prevent fraudulent claims. However, this move has been met with frustration and anger from the affected users. 

Kraken’s Decision Has Caused Confusion

Many creditors say Kraken had promised them an easy repayment process, but they faced problems. Mt.Gox’s creditors noted that Kraken’s verification link leads to a message about delays due to high volumes of verification requests from creditors, further causing confusion. Also, users affected by this are upset about the exchange’s inconsistent response.

Furthermore, critics argue that Kraken should have communicated more effectively and provided clearer guidelines about the verification process. However, Kraken has said that following strict verification protocols is crucial to ensure the legitimacy of the repayment process in response to the criticism.

Meanwhile, a user pointed out that the Trustee will review Kraken verifications by the August 30 deadline, and everything should be in order by then.

Kraken Receives Bitcoin Mt. Gox For Distribution

Recall that the renowned cryptocurrency exchange confirmed the receipt of over 48,000 in Bitcoin and Bitcoin Cash from the Mt.Gox Trustee. According to reports, the receipt of funds by Kraken signals progress in the distribution of assets to creditors who have been waiting for years for reimbursement.

Meanwhile, in an email, Kraken announced it would work diligently to distribute the funds. However, the exchange said in its email that the amount to be distributed to affected users will be determined by the Trustee.