Bitcoin exchange Kraken is now accepting creditor claims against MtGox, formerly the world’s largest bitcoin exchange that collapsed early last year.
MtGox bankruptcy trustee Nobuaki Kobayashi chose Kraken to help with the distribution of remaining MtGox bitcoins to creditors, citing its stable exchange operations and good standing with regulators.
Kraken’s exchange ranks near the top 10 globally in volume. It currently commands about 0.5% of global bitcoin trading and dominates the euro-based market.
Make or Break Decision: Finding the Liquidity Provider Thats Best for YouGo to article >>
Most major creditors have already submitted claims through the existing process being administered by Kobayashi. The new process is accessed online and may make it easier for clients who have not filed a claim. There are reportedly as many as 100,000 creditors. According to a notice on MtGox’s site, creditors have until May 29 to file their claims, either through MtGox or Kraken.
Creditors using the Kraken avenue may also receive their payout in bitcoin, whereas those proceeding through MtGox are only eligible to receive fiat. There are approximately 200,000 bitcoins remaining in the neighborhood $44 million, plus roughly $11.5 million in other assets. The steep decline in bitcoin prices since last year’s collapse has shaved tens of millions off the value of remaining bitcoins.
Creditors using Kraken would first have to open a account with the exchange. As part of the process, verified creditors can receive up to $1 million in trading credits, which are good until one month after the start of claims distribution.