Can Kraken crack the case of Mt.Gox’s missing Bitcoins?
Kraken, a San Francisco-based Bitcoin exchanged, has been brought in to aid in the investigation of the missing MtGox Bitcoins, as well as the distribution of its remaining assets to creditors. The announcement was made during the second hearing for Mt.Gox creditors at Tokyo’s District Court.
Jesse Powell, the CEO of Kraken, said he was humbled that his company was given the opportunity to help the Bitcoin community. He is also hoping Kraken can help in repairing the tarnished reputation of Bitcoin because of what happened to Mt.Gox.
In a press release, Kraken stated that its duties as part of the investigation may include aiding in the investigation of the possible lost or stolen Bitcoins, creating a system to file and investigate claims, helping with the distribution of Bitcoins and/or fiat assets to creditors, and the exchange of Bitcoins to fiat currency when needed.
“The outcome of the MtGox bankruptcy proceedings will deeply affect the Bitcoin community as a whole,” said 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.”
Mt.Gox filed for bankruptcy earlier this year after blaming hackers for stealing thousands of Bitcoins via a flaw in the Bitcoin protocol. Powell said creditors’ funds has now been tied up for 10 months and that there’s no justification in keeping them waiting longer.
When asked whether there was any hope of getting back the stolen Bitcoins, Powell stated that there was a slim chance. But Kraken won’t be given direct access to Mt.Gox CEO Mark Karpeles, and will instead have to ask questions through trustee Nobuaki Kobayashi, who is leading the investigation. Powell will also work closely with Wiz Technology, which has conducted its own extensive investigation of the Mt.Gox incident, to shed new light as to what transpired before it went bankrupt.
Creditor Peter Tilley said he was delighted that Kraken would now aid the investigation, saying he “came away from this announcement with a much more positive view of the future. I’m happy to see these guys on the case, as opposed to others who aren’t as qualified to handle it.”
photo credit: zcopley via photopin cc
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