Former Bitcoin Exchange Mt. Gox Heads for Liquidation

Mt. Gox, formerly the world’s biggest exchange for the digital currency Bitcoin, has moved closer to liquidation after a Tokyo court dismissed the company’s bid to resuscitate its business, said the court-appointed administrator.

Mark Karpeles, its chief executive (CEO), also potentially faces investigation for liability in the collapse of the Tokyo-based firm, the provisional administrator, lawyer Nobuaki Kobayashi, said in a statement published on the Mt. Gox website.

“The Tokyo District Court recognised that it would be difficult for the company to carry out the civil rehabilitation proceedings and dismissed the application for the commencement of the civil rehabilitation proceedings,” he said.

Mt. Gox filed for bankruptcy protection from its creditors in Japan after shutting down on 25 February, saying it may have lost some 850,000 Bitcoins – worth around US$454m at current rates – due to hacking into its computer system. It later announced that 200,000 had been located.

In its order for provisional administration, the court put the company’s assets under Kobayashi’s control until bankruptcy proceedings officially commence and a bankruptcy trustee is named.

“It is expected that, if the bankruptcy proceedings commence, an investigation regarding the liability of the representative director of the company will be conducted as part of the bankruptcy proceedings,” a statement read.

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