Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comKey Contacts
Back
The Mt. Gox exchange has been the largest financial exchange for Bitcoin throughout most of the currency’s existence. All of that changed in recent weeks, when a error in the exchange’s transaction protocol led Mt. Gox to halt all Bitcoin withdrawals, according to The New York Times.
On Monday, Feb. 24, the exchange appeared to be on the verge of collapse, and that night, a number of other exchanges told the news source that Mt. Gox would shortly be filing for protection under the bankruptcy law as a result of months of uncertainty and a major theft. An unverified document circulating through the Bitcoin world claimed that the exchange had lost about 744,000 Bitcoins – roughly 6 percent of the 12.4 million Bitcoins in global circulation.
The day before, the financial institution’s chief executive, Mark Karpeles, resigned from his position at the board of the Bitcoin Foundation, a nonprofit digital currency advocacy group, according to The New York Times.
While users have been selling rights to Bitcoins trapped on the Mt. Gox exchange for well below market price, the most recent price for the currency is at $515.67 as of 2:30 p.m. EST on Feb. 25, according to the Coindesk Index.
As of 10:30 p.m. EST, on Feb. 24 the Mt. Gox exchange was offline, and users navigating to the site were met with a blank page, according to Re/code. It remains unclear whether holders of coins trapped in the Mt. Gox exchange will able to retrieve the coins or fiat currency held by the exchange. Re/code was unable to independently verify with Mt. Gox whether it would be filing for protection under the bankruptcy law, as the exchange is currently refraining from making public comment.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.