Mt. Gox Gives Up On Rebuilding, Files For Liquidation

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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.

 

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