The online Bitcoin exchange site Kraken, operated by Payward Inc, will be helping the former Bitcoin exchange giant Mt Gox to liquidate and investigate where the thousands of Bitcoins they are missing has gone. The liquidation will help pay back investors and customers, who currently has lost several hundred million dollars.
Tokyo's bankruptcy court approved the partnership between Kraken and Mt Gox on Monday and it is expected that creditors of Mt Gox will approve of it as they were not satisfied with the court-appointed trustee Nobuaki Kobayashi. Kobayashi was said to lack a basic understanding of Bitcoins and cryptocurrencies, which would provide creditors with a smaller chance of receiving back any funds.
Around 127,000 creditors are owed money, which originally amounted to around $500 million, but with the value of the Bitcoin having gone down, it is currently less than half of that. In total around 650,000 Bitcoins are still missing, after a hard drive was found with 200,000 Bitcoins on it earlier this year.
“The outcome of the Mt. Gox bankruptcy proceedings will deeply affect the bitcoin community as a whole. 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.” Chief Executive Officer of Kraken, Jesse Powell said to the Wall Street Journal.