Mt. Gox abandons plans to rebuild, files for liquidation instead

By on April 16, 2014, 1:30 PM
exchange, liquidation, bitcoin, bitcoin exchange, mt gox, mark karpeles

Bad news for those holding on to a glimmer of hope that embattled Bitcoin exchange Mt. Gox might one day return their holdings – the company has decided to abandon plans to rebuild the business and instead is seeking to liquidate all assets.

Sources close to the matter told The Wall Street Journal that Mt. Gox has asked a Tokyo court to allow them to liquidate due to the complexity of holding business meetings with creditors around the world as well as the unrealistic rehabilitation plans set in place. The company has some 127,000 different creditors spread across the globe.

One person close to the company said they are still holding out hope that a buyer for the exchange will be found. Under this outcome, creditors could receive a portion of any future earnings while liquidation would mean they’d likely recoup less of their investment.

The Tokyo court is expected to make a decision on the request within the next two weeks. Should the court approve the request, a trustee would be appointed that would take over management of Mt. Gox’s assets from chief executive officer Mark Karpeles.

Mt. Gox, once the largest Bitcoin exchange in the world, went offline in late February. A few days later, the company filed for bankruptcy protection and claimed hackers stole nearly half a billion dollars worth of Bitcoins by exploiting a bug in the Bitcoin software.

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