Home > News > Mt. Gox Edges Towards Liquidation • Bookmark   • Newsletters   • Register Search Options


Mt. Gox Edges Towards Liquidation

Mt. Gox Edges Towards Liquidation
Get XBIZ News
Apr 22, 2014 2:00 PM PDT    Text size: 

TOKYO — Mt. Gox, the Tokyo-based bitcoin exchange that suddenly declared bankruptcy in February after allegedly losing about half a billion dollars to hackers, signaled in a recent announcement that it will most likely proceed to liquidation.

The statement, posted on the Mt. Gox website, says that the Tokyo District Court has dismissed its request to rehabilitate its business.

Mt. Gox’s former CEO Mark Karpeles has apparently lost his authority over the company’s assets. Attorney Nobuaki Kobayashi has been named the provisional administrator by the court.  

Kobayashi wrote on April 16, “Today, in circumstances in which it would be difficult for the company to carry out the civil rehabilitation proceedings, the Tokyo District Court recognized that it would be difficult for the company to carry out the civil rehabilitation proceedings and dismissed the application for the commencement of the civil rehabilitation proceedings, and at the same time, issued an order for provisional administration by which I was appointed the provisional administrator.”

He adds that he will “strive fairly and equitably adminster the company’s assets, both domestically and internationally” using foreign procedures and a Chapter 15 bankruptcy filing in the U.S.

Conceding that investors and creditors may be inconvenienced by the situation, he asks for understanding “in view of the special circumstances of this matter and the fluid situation.”

The statement also includes an FAQ section for interested parties.

Mt. Gox shuttered in February, claiming it had lost 750,000 of its customers’ bitcoins, along with 100,000 of its own, reportedly amounting to about $500 million. Nothing in the market foreshadowed the collapse, and at the time bitcoin seemed to be gaining traction as a legitimate form of currency in some countries, including the U.S.

Adult companies gravitated towards the anonymity that the cryptocurrency afforded, and the roster of companies that set up a bitcoin payment gateway was long and respectable, including Playboy Plus, MOFOs, Naughty America, Wicked Pictures, Porn.com, Grooby.com, DominicFord.com, ClassyCams.com and MetArt.com and Internet payment service provider Verotel, among others.

Mt. Gox now faces class-action lawsuits in the U.S. and Canada from users who claim fraud by the company.       

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


‘Alternative Facts’ of PC vs. Mac Users

Now that we live in a world of “alternative facts” it feels like somehow everyone has become a little more critical about what information and data they are digesting, and where it came from. Don’t... More »

Putting a Dollar Figure on Your Website's Worth

Daily, I get asked the question, “what’s my website worth.” And it’s the hardest question for me to answer. Someone will go to my website and fill out the contact form, put in... More »

New Solutions Require a Bullheadedness, Different Process

Each January we lead a small group of industry leaders on a tour of the crazy innovations at the Consumer Electronic Show in Las Vegas. It’s a grind on our bodies. We all train for it beforehand.... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.



Mar 31 - Apr 02
Denver, CO.

Eurowebtainment 2017

May 17 - May 20
Majorca, Spain

XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!