Kraken has emerged as a major player in the Mt. Gox bankruptcy proceedings, confirming its impending role in an array of various financial support operations.

The San Francisco based digital currency exchange “has been selected to support the investigation of missing bitcoin and the distribution of remaining assets to the creditors,” a statement on its blog released earlier today reads.

“Duties that Kraken may be asked to carry out include the following:

  1. Aid in the investigation of possible lost or stolen Bitcoin
  2. Aid in the creation of a system to file and investigate claims
  3. Help to distribute Bitcoin and/or fiat assets to creditors
  4. Exchange Bitcoin to fiat currency when needed.”

Claimants and new customers will also most likely need to create a Kraken account to benefit from the support.

According to Kraken, its work has come about following “an extensive evaluation process,” in which various options and candidates were vetted in order for their financial stability and reliability to be ascertained.

Kraken CEO Jesse Powell said as part of the press release:

“The outcome of the MtGox 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.”

Powell had originally attempted to assist Mt. Gox after another attack in 2011, and thereafter decided to open Kraken as a major competitor. Since then, he has voiced frustration with the legal conditions for Bitcoin startup operation in his native US, and increasingly looked to Japan for a solution. Kraken became one of the first members of the Japan Authority of Digital Assets.

The investigation surrounding the theft of over 850,000BTC from Mt. Gox exchange is still ongoing, despite approximately 200,000 having since allegedly reappeared in March 2014. The causes which led up to the original security lapses or otherwise remain uncertified.

In July, complaints were received regarding liquidator Nobuaki Kobayashi’s costs accrued while conducting the investigation without providing significant results to creditors.

Kraken currently states that full information regarding the move will be made available later.


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