Joel R. Glucksman
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U.S. Bankruptcy Judge Stacey Jernigan approved Mt. Gox’s filing for protection under Chapter 15 of the bankruptcy law in Dallas on June 17, according to Bidness Etc. The beleaguered bitcoin exchange closed down earlier this year after losing over $300 million worth of the cryptocurrency.
Under its Chapter 15 filing, Mt. Gox will be able to commence with liquidating assets and paying back its creditors, according to the news source. After filing a class action lawsuit, the Tokyo-based exchange’s former customers agreed to split the 200,000 recovered bitcoins that were found after the initial announcement in February that Mr. Gox had lost 800,000 bitcoins.
At press time, each bitcoin was worth $604.45, according to the CoinDesk Index.
According to CoinDesk, the ruling allows Japanese courts – including Japanese bankruptcy trustee Nobuaki Kobayashi – to take a stronger role in distributing assets and considering any plans at reviving the exchange. A number of companies have expressed interest in reviving the Mt. Gox exchange, including Sunlot Holdings, CoinLab and OKCoin.
Before the crash, Mt. Gox was the largest bitcoin exchange in the world, with roughly 80 percent of all global trades passing through its network. There have been several theories as to what happened to the disappeared coins, and lawyers for the international class of ex-exchange users have indicated that they will pursue further action against CEO Mark Karpeles, according to the news source. More recent evidence has suggested a two-year long cyber attack, which stole bitcoins from the Mt. Gox platform.
The Mt. Gox exchange resulted in a crash in value for bitcoin that is visible on the CoinDesk Index data for early February. Trading at a local high of $854.37 on Feb. 2, bitcoin dropped to $676.91 by Feb. 8.
Click to read to get the entire story on Mt. Gox’s bankruptcy.
If you have any questions about this post or would like to discuss your company’s creditors’ rights and bankruptcy matters , please contact me, Joel R. Glucksman at ScarinciHollenbeck.com.
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