Court rejects bankruptcy protection for Mt. Gox

Global News

TOKYO – The Mt. Gox bitcoin exchange in Tokyo is headed for liquidation after a court rejected its bankruptcy protection application.

Mt. Gox said Wednesday the Tokyo District Court decided the company, which was a trading platform and storehouse for the bitcoin virtual currency, would not be able to resurrect itself under a business rehabilitation process filed for in February.

An administrator will try to sell the company’s assets and many creditors, including those who had bitcoins with the exchange, are unlikely to get any money back.

After Mt Gox. went offline in February, its CEO Mark Karpeles said that 850,000 bitcoins worth several hundred millions dollars were unaccounted for, blaming a weakness in the exchange’s systems.

Later, Mt. Gox found 200,000 of the bitcoins, changing the estimate for the lost virtual currency to 650,000 bitcoins, although the exact amount is still under investigation. Mt Gox. has suggested the bitcoins…

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