New page in MtGox controversy and bitcoin potboiler

|December 1, 2014 0
Image courtesy of Stuart Miles at freedigitalphotos.net
Kraken Selected to Aid MtGox Liquidation and Investigation

SAN FRANCISCO:  Kraken, a San Francisco-based bitcoin exchange, 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. Kraken says it 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.

Duties that Kraken may be asked to carry out include aid in the investigation of possible lost or stolen Bitcoin, aid in the creation of a system to file and investigate claims, help to distribute Bitcoin and/or fiat assets to creditors, and exchange Bitcoin to fiat currency when needed.

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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.

To jog the memory of readers a bit here, Mt Gox, once  a big bitcoin exchange, had filed for bankruptcy protection in Japan early this year, indicating that it might have lost nearly half a billion dollars worth of the virtual coins due to hacking into its faulty computer system.  The concomitant halting trades of the crypto-currency and the bankruptcy news, had shaken the nascent bitcoin community.

When Mt. Gox’s French CEO Mark Karpeles had come forward for a public apology in Japanese at a news conference at the Tokyo District Court, he had attributed his firm’s collapse on a “weakness in our system”, but had predicted that bitcoin would continue to grow.

The incident had raised questions on the so-called strengths of traceability and security of bitcoins vis a vis other currency options and conventional systems.

 

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