Kraken Selected to Assist in Mt. Gox Liquidation, Investigation

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Up and coming cryptocurrency exchange Kraken had some interesting news to deliver on Tuesday, noting that they have been chosen to help out in the liquidation and investigation of Mt. Gox, a Japanese bitcoin exchange that collapsed in spectacular fashion early this year (leading to the loss of hundreds of millions of dollars belonging to investors).

On the Kraken blog, it was noted that the San Francisco-based exchange was chosen out of a number of exchanges, calling the process “extensive” and noting that they’ve been “thoroughly vetted.”

The exchange says the reasons they were selected include their ability to operate a stable exchange platform and support their customer base. Additionally, the folks at Kraken say they were selected because they’ve quite simply got the know-how in the industry, which is reasonable enough.

Kraken’s role in the investigation comes in four parts, as noted on the company’s blog:

1. They will help out in the investigation relating to potentially lost or stolen bitcoin.
2. They will help “in the creation of a system to file and investigate claims.”
3. In the event of bitcoin distribution to creditors, they’ll help out on this front.
4. They’ll exchange bitcoin to fiat currency as required.

Kraken notes that in the event bitcoins to get distributed to creditors who lost money in the fiasco earlier this year, they may be required to sign up for a Kraken account, if they do not already have one. It’s likely the most efficient way to take on such a task.

“The outcome of the MtGox bankruptcy proceedings will deeply affect the Bitcoin community as a whole,” says Jesse Powell, Kraken CEO. “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.”

Kraken launched publicly in September 2013, in attempts to serve as a dependable exchange solution. Today, the exchange serves over 100,000 clients worldwide.