Financial News

  • 17 April 2014, 7:30

Mt Gox Bitcoin Exchange Heads For Liquidation

Troubled bitcoin exchange Mt Gox is due to be liquidated after a Japanese court rejected a bailout plan.

The company was once the world's biggest exchange for the cyber currency.

A court-appointed administrator confirmed the rejection and said CEO Mark Karpeles is also likely to be investigated for liability in the collapse of the Tokyo-based firm.

In a letter posted on the company's website, the administrator said: "The Tokyo District Court recognised 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.

"The dismissal of the application for commencement of a civil rehabilitation procedure will create great inconvenience and concerns to our creditors for which we apologise."

Mt Gox filed for bankruptcy protection from creditors in late February, amid fears it might have lost around 850,000 bitcoins - worth about $454m (270m) - after it was hacked.

The company later said it had found around a quarter of the missing bitcoins.

The provisional administration puts the company's assets under regulator control until bankruptcy proceedings officially commence and a trustee is named.

The court's decision comes after Mr Karpeles' lawyers told a United States federal judge this week he is not willing to travel to the US to answer questions about the bitcoin exchange's American bankruptcy case.