Bitcoin

Kraken, a prominent crypto exchange, is facing criticism due to rejection of Bitcoin (BTC) payouts to creditors involved in the Mt. Gox bankruptcy proceedings. These issues have arisen despite verification that have caused confusion among users. Moreover, this controversy highlights ongoing problems related to the verification and payout processes following the exchange insolvency. 
<h2 id="mt-gox-creditors-on-kraken-receive-no-bitcoin-payments">Mt. Gox Creditors On Kraken Receive No Bitcoin Payments</h2> 
According to several posts on Mt Gox insolvency subreddit from users affected by this issue, Kraken has repeatedly informed them that their account verification levels are insufficient to process the <a href="https://coingape.com/us-government-transfers-29800-bitcoin-from-silk-road/" target="_blank" rel="noopener">Bitcoin tranfers</a>. One user reported receiving an email from Kraken, which indicated that their account was not verified at the intermediate or pro level, which is required to receive payouts. 
Despite reaching out to Kraken for clarification, the user received the same notification months later. Moreover, the frustration is compounded by Kraken’s inconsistent responses. Affected users have shared that Kraken initially assured them that everything was in order, only for them to encounter the same problem again. 
“Failure of confirmation by Kraken (again)” was a recurring theme in user complaints. In addition, a user posted, “I had received this email, saying my account level was not intermediate/pro, and I was not able to get my BTC transfer done.” 
Adding to the confusion, the link provided by <a href="https://coingape.com/education/binance-vs-kraken/" target="_blank" rel="noopener">Kraken</a> for verification details leads to a message indicating delays due to high volumes of verification requests from creditors. This has further aggravated the situation for those expecting timely resolution. A user highlighted the ongoing issue, stating: 
<blockquote>
 “Even though I queried and responded to an email from the trustees in January, they still think I am unverified. Infuriating incompetence.”
</blockquote> 
Also Read:&nbsp;<a href="https://coingape.com/breaking-mt-gox-prepares-to-move-the-rest-of-80-5k-bitcoins-btc-under-pressure/" target="_blank" rel="noopener">Breaking: Mt. Gox Readies Transfer of Remaining 80.5K Bitcoins, BTC Faces Pressure</a> 
<h2 id="official-stance-on-the-matter">Official Stance On The Matter</h2> 
Hence, the Mt. Gox Rehabilitation Trustee has outlined the necessary steps for creditors to ensure their accounts are eligible for payouts. These include revising account information, updating creditor names, and ensuring that the account level meets the required standards. However, many users report that despite taking these actions, Kraken continues to reject their payouts due to purported verification issues. 
Kraken’s stance on the matter remains firm. The <a href="https://coingape.com/crypto-exchanges/" target="_blank" rel="noopener">crypto exchange</a> has reiterated that the verification issues lie with the account levels not meeting the required standards as outlined by their system. Thus, all necessary actions must be completed through Kraken’s platform, not the Mt. Gox claims system. 
The exchange’s customer support has been reportedly unresponsive or slow in addressing these issues, according to user comments. This adds to the frustration of users who are eager to receive their funds. However, a user highlighted that the Trustee will reportedly check Kraken verifications by the August 30 deadline and everything should be in line then. 
Also Read:&nbsp;<a href="https://coingape.com/coindcx-ceo-says-wazirx-hack-compensation-plan-is-utter-nonsense/" target="_blank" rel="noopener">WazirX Hack: CoinDCX CEO Deems Compensation Plan “Utter Nonsense”</a> 
The post <a href="https://coingape.com/kraken-rejects-bitcoin-payout-to-mt-gox-creditors-despite-verification/">Kraken Rejects Bitcoin Payout To Mt Gox Creditors Despite Verification</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Kraken Rejects Bitcoin Payout To Mt Gox Creditors Despite Verification

Table of Contents

Coingape News Media

Other articles published on Jul 30, 2024

Trump vs SEC Will Explode 19,000% Before Exchange Listings, While Shiba Inu and Dogecoin Lag

Justin Sun Influences Ethereum Market with Major Transactions

HashKey Global Expands Crypto Derivatives Offerings with New Perpetual Futures Contracts

Bitcoin, Dogecoin Drop, Ethereum Gains As US Government Moves $2B In BTC: Economist Links Kamala ...

Is Bitcoin Still the Most Commonly Exploited Cryptocurrency by Criminals?

What’s next for UK crypto regulations after Coinbase’s $4.5M fine?

Join our free newsletter for daily crypto updates!