Entries with tag bankruptcy cases.

Japanese Court Orders Liquidation of Mt. Gox Bitcoin Exchange

A Tokyo District Court has ordered the complete liquidation of the Mt. Gox bitcoin exchange. Once the world’s largest bitcoin exchange, Mt. Gox initially filed for bankruptcy protection on 28 February, after reporting that a large number of bitcoins had been stolen and that money was missing from its accounts. Mt. Gox had asked for bankruptcy protection in Japan so that it could continue operating, but the court ordered the liquidation based on its finding that the company could not be rehabilitated. Under terms of the liquidation, the company’s remaining assets will be converted to cash for distribution to creditors. Mt. Gox also filed for bankruptcy protection in the US. The judge in the case ordered Mark Karpeles, the company’s chief executive, to appear in court April 17 to answer questions, but he did not travel to the US to do so. (Reuters)(CNET)

Japanese Court Rejects Bankruptcy Protection Petition of Troubled Bitcoin Exchange

Tokyo-based Mt. Gox, once the largest bitcoin exchange in the world, had its bankruptcy protection application rejected by a Japanese court. The company will likely be liquidated as a result. The Tokyo District Court found the company could not be rehabilitated. The remaining assets may be sold by an administrator, but it is unlikely that creditors will be paid. An administrator has yet to be named. Mark Karpeles, the failed company’s chief executive officer, will likely be investigated for liability in the business’s failure, according to a statement by Nobuaki Kobayashi, an attorney and the provisional administrator of the company, appearing 16 April on the Mt. Gox website. The exchange filed for bankruptcy protection 28 February after “losing” roughly 850,000 bitcoins worth about $425 million; 200,000 of them were later found. The company has also filed for protection in the US courts. Karpeles, who remains in Japan, says he will not comply with an order from the US Treasury’s Financial Crimes Enforcement Network to attend an 18 April hearing in the US. Karpeles claims he is seeking legal representation before appearing in court in the US. (The Associated Press)(Reuters)(USA Today)(Forbes)(Mt. Gox)

Mt. Gox Bitcoin Exchange Files for Bankruptcy in US

Mt. Gox, the Japanese-based bitcoin exchange that was once the world’s largest, has filed for bankruptcy in the US. The company filed for bankruptcy in Japan in February. The US Chapter 15 bankruptcy proceedings, which apply to cases involving parties located in more than one country, let foreign debtors and other parties use the US bankruptcy system for their proceedings in these cases. The company closed its doors under mysterious circumstances. It reportedly lost its customers’ holdings to theft by hackers, but some observers lay the blame on poor management. A class-action lawsuit against Mt. Gox has been filed in the federal court in Chicago. (ZD Net)(MarketWatch)(Reuters) 

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