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Former Bitcoin exchange Mt. Gox gets US bankruptcy protection thanks to American court

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The defunct Bitcoin exchange Mt. Gox, once the world’s leading cryptocurrency trading platform, has received approval from an American court to initiate the Chapter 15 bankruptcy proceedings in the United States.

The company has been trying to settle with its American customers, while looking for a buyer brave enough to try and save the exchange. The platform was closed earlier this year after announcing it had lost around 850,000 BTC due to a hack.

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Mark Karpeles, CEO of Mt. Gox

Judge Stacey Jernigan of the US Bankruptcy Court, in Dallas, recognized and approved the Chapter 15 filing, which means the exchange’s representatives can now pursue funds to repay its creditors within a wider time frame.

The request was presented to the court back in March, when Mt. Gox was fighting to prevent the American customers who had filed a class action lawsuit from seizing its United States-based assets – computer servers, for instance – and demanding evidence or having access to Mt. Gox executives, Reuters reports.

The deal establishes that both American and Canadian customers will split the 200,000 BTC currently held by Mt. Gox (the exchange announced it found these Bitcoins after the first wave of controversy) and also share in a 16.5 percent stake after the trading platform is sold.

Maria is an experienced journalist currently living in the UK. She has been writing about Bitcoin and the altcoin universe since 2013. She is also a member of the Lifeboat Foundation's New Money Systems Board and a big cryptocurrency supporter.

View all Posts by Maria Santos

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