Japanese Court Rejected MtGox Bankruptcy ProtectionAdded: Monday, April 21st, 2014
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Once the largest Bitcoin exchange across the globe, MtGox is now likely to be liquidated, because a Japanese court recently denied it bankruptcy protection.
Assets of MtGox are expected to be sold off in order to pay part of its creditors, including those who had accounts on the site. Of course, it is clear that any creditor will recoup much less than their initial stake, even despite the fact that it is unknown yet how much the infrastructure of the company, including the intellectual property like the MtGox brand, is worth.
Tokyo-based exchange known worldwide as MtGox made headlines around the world a couple months ago when it closed its doors without warning. After shutdown, millions of dollars worth of Bitcoin, along with deposits in multiple conventional currencies became inaccessible to the exchange users.
The company had to admit that it was missing about 850,000 Bitcoin, which is equal to $670 million. After making this announcement, MtGox applied for a civil rehabilitation order, the Japanese equivalent of bankruptcy. Since then, the company has somehow “found” 200,000 Bitcoin in an account it hadn’t used for many years. However, even this discovery was not enough to convince the local court that it could be made whole again. Now the experts admit that following the dismissal of the rehabilitation order, the exchange has no other way than to be liquidated.
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Monday, April 21st, 2014No comments
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