In a controversial development, Mt. Gox Bitcoin (BTC) creditors are facing significant hurdles withdrawing their reclaimed assets from the Bitstamp crypto exchange. Several users have voiced their frustrations on Mt. Gox insolvency subreddit. They alleged that Bitstamp is effectively holding their coins “hostage” by implementing an arduous withdrawal verification process.

Bitstamp Restricts Mt. Gox Bitcoin Withdrawal

An original poster detailed their struggle, explaining that despite having their coins credited to their Bitstamp accounts, they were unable to withdraw them. The withdrawal requires users to complete a mandatory video call with customer support. The poster lamented that all available slots for the video calls were fully booked, causing further delays.

“My question is if I’m already verified with Bitstamp, what gives them the legal right to hold the coins hostage like this? Someone talk me down please. I’m more than pissed about this,” the original poster wrote. In contrast, another member of the subreddit provided a different perspective, noting that Bitstamp has up to 90 days to distribute the funds contractually.

“They emailed us and said we’ll get the coins within a week and they posted the amounts to our account in a day. Let’s give it a few more days. A few extra security steps isn’t going to hurt after what we’ve gone through,” they remarked.

Another user echoed these sentiments, emphasizing that users had consented to a 90-day processing period when they agreed to Bitstamp’s terms. Moreover, they criticized the original poster’s impatience and urged them to consider the broader context of ensuring a smooth and secure distribution process.

“Clearly they chose this procedure to make sure the distribution process works and no glitch occurred/has been fixed. As soon as they verified, they just lift the freeze and you can spoil the money,” the user commented. Adding to the discussion, a user speculated that the original poster might have a substantial amount of Bitcoin, necessitating additional security measures by Bitstamp.

“It’s actually been a long-standing policy that large coin withdrawals go through a bespoke process not their automated system and they want to talk with you. I think they need to make sure the customer is competent at self-custody and waves all their liability if they are idiots and destroy/lose it all,” they suggested.

Bitstamp Issues Official Response

Despite these explanations, another user expressed skepticism over the need for additional verification by Bitstamp, pointing out that other exchanges did not impose such requirements. “Nobody else seems to require this, very strange. I can understand why they didn’t mention this before people chose the exchange as nobody would have used them at all,” the user argued.

Contrasting Bitstamp’s approach, users praised Kraken for its prompt and smooth disbursement process. “No problems at all withdrawing both fiat and BTC, within hours of receiving the goxxcoins. Kraken is an amazing exchange,” a Kraken user shared.

Bitstamp attempted to address these concerns on X (formerly Twitter), reassuring users that “the users don’t have to do anything.” The crypto exchange’s statement suggests that the delay is temporary and assures speedy resolution without further action required from the creditors. However, after a decade-long wait for Mt. Gox repayments, the frustration among some creditors is understandable.

Notably, Kraken, despite its recent praise, also faced backlash earlier in the week. Some users reported that Kraken had failed to disburse the Mt. Gox Bitcoin to certain creditors. In addition, it allegedly did not follow up with emails, leaving many without their expected repayments. Furthermore, some creditors claimed that they didn’t even receive the initial cash payments.

The post Mt Gox Bitcoin Creditors Face Withdrawal Restriction On Bitstamp appeared first on CoinGape.

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Filed under: News - @ July 26, 2024 1:26 pm