Chicago judge freezes assets belonging to Mt. Gox American affiliate

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The United States-based affiliate of the bankrupt Japanese Bitcoin exchange Mt. Gox had all its assets frozen this Tuesday (11) by a federal judge in Chicago.

The action enacted by US District Judge Gary Feinerman against Mt. Gox Inc. sees the light of day shortly after the exchange filed for bankruptcy in the country. According to the judge’s decision, announced after a hearing, all assets belonging to Mt. Gox’s American affiliate, its corporate “parent” Tibanne KK and to the former CEO Mark Karpeles are temporarily frozen until March 25th.

Neither one of these entitites was represented in court, as only the lawyers of the Tokyo-based Mt. Gox were present, despite the fact that the action doesn’t affect the Japanese company and its assets.

Once the world’s biggest Bitcoin exchange, Mt. Gox is currently involved in a massive scandal. The company says almost 750,000 BTC belonging to customers and 100,000 BTC of its own cryptocurrency stash – about seven percent of all Bitcoins – went missing.

The hearing held this Tuesday (11) is part of just one of the many actions being filed against Mt. Gox, according to Bloomberg. While most former clients are accusing the exchange of misappropriation and fraud, Mt. Gox Co. was granted protection from creditors in the United States thanks to an order enacted by US Bankruptcy Judge Harlin Hale. The document, issued in Dallas, shields the company from litigation.

Featured image from Wikimedia

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Maria Santos

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.

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