MtGox Bankruptcy Proceedings: Kraken Appointed

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MtGox Bankruptcy Proceedings: Payward Appointed

Payward Japan K.K, who operates the digital currency exchange Kraken, was today appointed as the supporting company for the bankruptcy Proceedings concerning MtGox Co., Ltd. It would be recalled that following the closure of MtGox, Nobuaki Kobayashi, Attorney-at-law were appointed as the Bankruptcy trustee to oversee proceedings and ensure organised liquidation of the company assets.

This will come as welcome news to the millions of Bitcoins faithful’s whose 744,000 bitcoins were trapped in the biggest and most notorious of all Bitcoin exchanges, MtGox following its collapse. The Daily Telegraph summed “MtGox was at one time the world’s leading Bitcoin exchange, handling 70 per cent of all transactions worldwide, but is currently undergoing bankruptcy proceedings after the apparent loss of digital currency belonging to users worth around $252,960,000 at today’s price, or £161,000,000. It also lost a further 100,000 Bitcoins of its own”.

According to the announcement papers released through MtGox Website, “Together with Payward, which will support MtGox in various aspects, we will continue to ensure that the Bankruptcy Proceedings will be conducted in an appropriate manner. Payward will not succeed MtGox’s operation. Payward will support the Bankruptcy Proceedings and purchase part of MtGox’s asset, etc. as the supporting company”.

According to Payward, it has decided to support the Bankruptcy Proceedings in the expectation that, by supporting the bankruptcy proceedings through the utilization of Payward’s expertise, the credibility of bitcoins in Japan and in the world will be secured and the bitcoin market will be developed soundly. In addition, as one of the top-ranked bitcoin exchanges in the world, Payward believes sound development of the bitcoin market is directly linked to the interest of Payward itself.

Payward’s remit within the context of the appointment will be to support the investigation of Mt Gox’s stolen bitcoins, manage the claims process and distribute the defunct company’s remaining assets to creditors.

Speaking at a press conference following the hearing, Kraken CEO Jesse Powell said he was “very humbled for the opportunity to help the community like this”, and that his firm hopes to repair bitcoin’s damaged reputation in Japan as much as build its own in the local market.

He said:

“It’s Kraken’s philosophy to always put the clients’ best interests first, and this is a philosophy that we will carry with us through supporting the trustee.”

There are still many decisions to be made in the process and Kraken has many questions of its own, he further added. The exchange will work closely with the trustee Nobuaki Kobayashi to investigate what happened at Mt Gox as much as possible, although it will not have direct access to Mark Karpeles, Mt Gox’s CEO.

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