Instawallet will start refunding its clients after July 19th

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It seems good news have finally arrived to the users of Instawallet. The company has officially closed its claims process, after 91 days receiving and analysing the requests submitted by clients.

Recalling the case, the Bitcoin wallet was created in April 2011, providing a faster alternative to other wallets. Instawallet required no signup or other verification: it created a secret link that gave access to each user’s wallet. The idea was apparently good, until the website’s security was cracked, allowing access to intruders that could then see the secret links. Due to this episode, the company had to close and customers started filing claims to get their money back.

At the time, Instawallet told its users that the wallets with less than 50 BTC would be part of an easier process, but the bigger ones would have to be dealt in a different way: case by case, that’s what they said.

Now, the claims process is closed and Instawallet’s latest update explains how the process is going to be handled. You can read below the information they published at their website:

Dear Instawallet users,

The claims process is now officially closed. Now that all claims have been collected we can come up with a payments table, listing for each claim the amount that should be paid.

Before the payments can be sent and our payouts table is considered final we need to collect the claimants approvals. We did our best to make sure that nothing fell through the cracks however we’d much rather make sure beforehand.

We also need to collect everyone’s explicit agreement on the amount that will be paid.

So here is exactly how this will all happen :

  • Today (July the 11th) at 10PM CEST, after 91 days, the claims submission interface will be disabled
  • On July the 12th we will handle the claims that came in after our last processing batch and before the cutoff
  • At the end of that day we’ll have a surrogate payouts table
  • We’ll update the claims interface with this data and make it publicly available
  • We will then proceed to go mind our own business for the week-end
  • On Friday the 19th of July we’ll broadcast a payout for all accepted claims [1]
  • For three months after this we’ll make weekly payouts for the claims that got accepted during the previous considered week

If an offered payout hasn’t been accepted three months after the first payouts it’ll be considered expired.

[1] Assuming no significant discrepancy or mistake is found in the calculations leading to our proposed payments table before Friday the 19th.

Finally, some light at the end of the tunnel for the service’s users.

Via coindesk.com

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Maria Santos

Maria is an experienced journalist currently living in the UK. She has been writing about Bitcoin and the altcoin universe since 2013. She is also a member of the Lifeboat Foundation's New Money Systems Board and a big cryptocurrency supporter.

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