Kraken the antidote to Mtgox losses?

Kraken, a San Francisco-based bitcoin exchange, has today announced that it has been selected to support the investigation of missing bitcoin and the distribution of remaining assets to the creditors. This decision comes after an extensive evaluation process where multiple companies were considered and thoroughly vetted.

Almost a year since the downfall of what at the time was the largest Bitcoin exchange in the world, a number of customers are still without their Bitcoin or equivalent fiat currency, with the trail having dried up in March this year after former MtGox CEO Mark Karpeles claimed that he would assist in locating lost Bitcoins that had allegedly vanished due to insufficient security.

A few days later, MtGox pledged to work alongside police to locate the missing virtual currency, with little result so far. This high profile loss of investments spearheaded an series of technology initiatives by many new Bitcoin related companies in enhancing security measures.

Kraken was chosen for reasons including its proven track record of stable exchange operation and reliable customer support, and possesses the skill and expertise required to properly carry out an investigation of the lost bitcoin and the distribution of assets to creditors.

“We’ve decided to volunteer our resources and expertise in an attempt to minimize damage to creditors, restore faith in the Bitcoin community, and demonstrate trusted leadership in the industry”

Duties that Kraken may be asked to carry out include assisting in the investigation of possible lost or stolen Bitcoin, taking an active part in the creation of a system to file and investigate claims, helping to distribute Bitcoin and/or fiat assets to creditors and exchanging Bitcoin to fiat currency when needed.

Provided the trustee decides to distribute bitcoin, creditors may be asked to create a Kraken account, if they do not already have one, to establish a secure, efficient and cost-effective platform for the distribution of bitcoin.

“The outcome of the MtGox bankruptcy proceedings will deeply affect the Bitcoin community as a whole,” said Kraken CEO Jesse Powell. “We’ve decided to volunteer our 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.

For the official release from Kraken, click here.

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Kraken the antidote to Mtgox losses?


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