Entries with tag mt. gox.

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)

US Blocks Some Major Bitcoin Exchange Transactions

The US Department of Homeland Security’s (DHS’s) Immigration and Customs Enforcement agency has taken  legal action to stop the Dwolla online payment service from processing bitcoin virtual-currency transactions. Dwolla can now no longer send funds to Mt. Gox, the world’s largest bitcoin exchange. Some Bitcoin exchanges let users buy bitcoins with money transferred via Dwolla and then sell bitcoins with the proceeds transferred to them via Dwolla. In a warrant, DHS accused Mt. Gox of operating an unlicensed money transmitting business. In its investigation, DHS said, it used an undercover informant who bought bitcoins using Dwolla and subsequently had them converted to dollars. In a statement posted on its Google+ account, Mt. Gox said “we have not been provided with a copy of the court order and/or warrant, and do not know its scope and/or the reasons for its issuance. Mt. Gox is investigating and will provide further reports when additional information becomes known.” (CNET)(Ars Technica)(The New York Post)(Mt. Gox)
 

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