Mt. Gox Gives Up On Rebuilding, Files For Liquidation

bitcoin
What's Next In Payments®
5:59 AM EDT April 16th, 2014

Defunct bitcoin exchange Mt.Gox has reportedly given up its quest to rebuild under bankruptcy protection in its home nation of Japan, and has instead requested permission to liquidate from a Tokyo court.

According to sources close to the situation cited by The Wall Street Journal, given the complexity of the situation faced by the international bitcoin exchange coupled with lack of realistic prospects for rehabilitation, liquidation seemed the best option for the company.

Mt. Gox was once the world’s busiest bitcoin exchange, before losing nearly $500 million in bitcoins. The company maintains the coins were lost when their system was accessed by hackers. The company has filed for bankruptcy protection in the United States, though CEO Mark Karpelès has said he will not appear in the Texas court where the company filed (he likely faces arrest if he does appear)

The liquidation will likely lower the amount investors can hope to recoup, though sources close to the company note that there is still some hope internally that the exchange can be sold.

 

“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.

Comments
Also by This Author
What's Hot
Loyalty & Rewards
Payment History Firm Pulls In $70 Million Investments
Mobile
Bitcoin Platforms Being Reclassified As Money Transmitters
Apple Pay Tracker
Wireless Carriers Could Be Left Out Of NFC Payments
Apple Pay Tracker
What CurrentC Didn’t Say
View All Articles ››
You May Also Like
Alternative Financial Services
How Much Of A B2B Payments Role Should Bitcoin Play?
Alternative Financial Services
Does Virtual Currency Have A Place In Global Payments’ Future?
Alternative Financial Services
Death Threats, Fraudsters and Lawsuits
Alternative Financial Services
Guess Who’s Investing In P2P Lending
View All Articles ››