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MT. Gox Creditors Faces Issues on Kraken and Bitstamp

July 30, 2024
in Business
MT. Gox Creditors Faces Issues on Kraken and Bitstamp
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Finally after a decade of wait, the creditors of Mt. Gox crypto exchanges are receiving their lost funds. Crypto community takes it as a great step however the creditors are facing problems claiming their repayments. Let’s explore what kind of issues they are facing and who is responsible for it.

Kraken rejecting payouts

Data from Arkham shows that two weeks ago Kraken received 48,641 BTC. This amount has to be paid to Mt. Gox creditors waiting for a decade. Even though kraken has received the amount from the trustee, this amount is not reaching the creditors. 

Source : Arkham

Creditors were given two options ; Bitcoin(BTC) and Bitcoin Cash (BCH). Some screenshots found on reddit shows that in some countries, the option to get this repayment in cash is available as well. 

The subreddit of Mt. Gox Insolvency and Kraken support is filling up with creditors complaints and displeasures. The most common issue is the rejection to pay by Kraken stating insufficient account level verifications. Many people are complaining that they have provided their documents multiple times, yet their accounts are not being upgraded. When they check the status of their account, it shows that due to the high number, it will take some time. This has been going on for weeks now. 

Source : Reddit

They are not even getting a satisfactory reply from the support team. Kraken requires the creditors to upgrade their accounts to intermediate or pro. 

The people who lost their funds in the 2011 hack and have been waiting for around a decade have a fear of losing their funds once again.

The promise of Mt. Gox trustee

The court-appointed trustee overseeing Mt. Gox proceedings announced in June, that every measure has been taken care of, to provide the repayments to creditors. However, the rising issues flagged by users are saying something else. There are many people who are complaining that even after providing the documented proof of them being creditors, they have not been provided any information. 

Bitstamp issues

Some people who received BTC as repayment on Bitstamp are facing another type of issue. Some people have complained that they have received less than they were promised. In another case, users have shared their concerns about getting wrong selling rates. According to them, when they tried to sell the BTC they received, the selling page was showing at least 1% low price as compared to the current bitcoin price. 

Some creditors are saying Bitstamp is holding their funds hostage and demanding for video call verifications. These creditors received funds because they have verified themselves. 

Source : Reddit

Looking Ahead

Even though Mt. Gox is making the promised payments, it is now supporting crypto exchanges that are becoming a pain to creditors. There should be some solid reasons for all this to be happening, however not providing support is not acceptable. These people have waited for almost ten years to get their funds and their frustration is understandable. The exchanges should be transparent and help them to solve the issues so they can enjoy their long awaited money.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Coinpedia – https://coinpedia.org/news/mt-gox-creditors-faces-issues-on-kraken-and-bitstamp/

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