There has been mounting pressure from Kraken users who have accused the exchange of refusing to pay out Bitcoin to creditors of Mt. Gox due to want appears as a technical glitch in the payment process. A rehabilitation strategy was established to disperse the recovered assets to the creditors after a sizable fraction of the lost Bitcoins was recovered in recent years.
Leading bitcoin exchange Kraken was brought in to help with claim verification and to make it easier to distribute the seized Bitcoins. Amount Gox creditor John Williams stated, “This is a huge setback for all of us who have been patiently waiting for justice.” He also added that “We received assurances that our claims would be investigated and that we would eventually be paid in Bitcoins.”
Arkham data has shown that Kraken exchange received 48,641 units of BTC last two weeks, from Mt. Gox management to be distributed to Mt. Gox creditors in a refund process drafted by the Mt. Gox Rehabilitation Trustee, a committee set up by Mt. Gox to refund it’s creditors.
Experts Wade in, Says Outcome of the Recent Development Unknown
Senior analyst James Carter of Global Crypto Insights stated, that “this incident is likely to fuel skepticism and concerns about the security and reliability of cryptocurrency exchanges.” The market needs clear and transparent mechanisms for handling such complex situations in order for it to mature and gain wider acceptance.”
The future still needs to be discovered for the creditors of Mt. Gox after Kraken’s faulty Bitcoin payout process. In a post on Reddit, one of the creditors said that the confirmation failure he gets has become almost like a recurring theme to him and many others like him.
The instructions released by the Mt. Gox Rehabilitation Trustee on the best way to redeem their refunds instructs that creditors must revise their account data, update their creditor name, and make sure their account level meets the stipulated standards. Other users have also complained that after managing to take these actions, Kraken has continued to turn down their payments because of obvious verification problems.
Many Kraken Users Say Kraken Recent Actions Frustrating
Mt. Gox creditors on Reddit have made a case around this development. Kraken has responded by issuing a formal notice stating that their account verification status needs to be improved to initiate the Bitcoin transfer.
One of the users recalled getting an email from Kraken management stating that their accounts had yet to be verified at either the pro or intermediate level – a level they say is needed to get the payouts. The disappointed users also stated that they received a similar notification from the exchange some months later.
The frustration from Kraken’s inability to respond promptly has continued to compound. Some other users have gone to several social media platforms to share messages from Kraken management, assuring them that everything is intact, only to recount the same problem over again.
More Users Recount Their Bad Experiences, Kraken Explains
Other users have also flooded different social media spaces to complain about how they have continuously received emails stating that their account level is not on either intermediate or pro (professional). This message is always accompanied by the difficulty of not being able to transfer the owner’s Bitcoin assets.
Users also complained that the verification link sent by Kraken to view details always leads the user to a message that indicates a delay as a result of high traffic in the verification volume. This implies that several creditors are also attempting to verify their details.
Meanwhile, Kraken has responded to the mountain of complaints with a firm stand, insisting that the verification problem is linked to the account owners. It insisted that the owners must meet the required standards stipulated on their platform before they can succeed. The company also emphasized that users must use Kraken’s platform for this process, not Mt. Gox’s claims system.
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