HindustanTimes Wed,20 Aug 2014


Bitcoin exchange MtGox files for US bankruptcy
New York, March 11, 2014
First Published: 23:37 IST(11/3/2014)
Last Updated: 23:41 IST(11/3/2014)

The troubled Bitcoin exchange MtGox filed for protection under the US bankruptcy law Monday, 10 days after doing the same in Japan after a huge loss of the digital currency, a court document showed.

MtGox Bitcoin exchange filed for bankruptcy February 28 in Japan, with CEO Mark Karpeles saying it had lost nearly half a billion dollars’ worth of the digital currency in a possible theft.

The company’s lawyer said 750,000 Bitcoins belonging to customers had gone, along with MtGox’s own store of the currency, which she said was around 100,000 units.

Read: Bitcoin exchange CEO Autumn Radtke found dead in Singapore

The Japanese firm is now protected temporarily under Chapter 15 of US bankruptcy law for foreign firms.

A bankruptcy court in Dallas, Texas, accepted the request and will make a definitive ruling in April, the document said.

Chapter 15 protects assets in the US of foreign firms facing insolvency procedures in their home countries.

The exchange has also requested the suspension of actions in the US that jeopardise its efforts to restructure abroad, it said in court filing.

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