Kraken Denies Bitcoin Payout to Mt Gox Creditors Despite Verification

Kraken, a major cryptocurrency exchange, is under scrutiny for rejecting Bitcoin (BTC) payouts to creditors involved in the Mt. Gox bankruptcy case. Despite claims of account verification, users are experiencing difficulties with the payout process, leading to widespread confusion and dissatisfaction.

Verification Issues Block Payouts

Several Mt. Gox creditors have reported problems with receiving their Bitcoin payouts from Kraken. According to posts on the Mt. Gox insolvency subreddit, Kraken has repeatedly stated that their account verification levels are insufficient. One user shared that an email from Kraken indicated their account was not verified at the required intermediate or pro level, which is necessary to process payouts. Despite attempts to resolve the issue, the user received the same notification repeatedly.

Inconsistent Responses and Delays

Affected users have noted inconsistent responses from Kraken. Initial assurances that the verification was in order were followed by repeated issues with the same problem. Complaints often mention "failure of confirmation by Kraken" and ongoing frustrations with unaddressed verification concerns. A user expressed exasperation, stating, “Even though I queried and responded to an email from the trustees in January, they still think I am unverified.”

Verification Process Complications

The Mt. Gox Rehabilitation Trustee has outlined specific steps for creditors to ensure their accounts are eligible for payouts. These steps include revising account details, updating creditor names, and meeting the required account standards. Despite following these guidelines, many users report that Kraken continues to reject their payouts, citing verification problems.

Kraken’s Official Position

Kraken maintains that the issue lies with account verification not meeting their internal standards. The exchange asserts that all necessary actions must be completed through its platform rather than the Mt. Gox claims system. Reports indicate that Kraken’s customer support has been slow or unresponsive, further frustrating users.

Future Resolution

The Trustee has indicated that Kraken’s verification processes will be reviewed by the August 30 deadline. This review is expected to align the verification standards with the required payout criteria.