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Embattled Bitcoin Exchange Mt. Gox Expected To File For Liquidation

It’s also possible the Japan-based Bitcoin exchange could find a buyer.

Embattled Bitcoin Exchange Mt. Gox Expected To File For Liquidation
[Image: Flickr user Zach Copley]

What was once the largest Bitcoin exchange now plans to file for liquidation.

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Mt. Gox filed for bankruptcy protection in Japan back in February after losing 850,000 Bitcoins worth close to $500 million in a heist that went unnoticed for years. The Japan-based exchange later said it recovered 200,000 of the missing Bitcoins.

If Mt. Gox’s request to liquidate is approved, creditors will be able to recoup some of their remaining Bitcoins. It’s possible Mt. Gox could also find a buyer, and future earnings on the exchange could be returned to creditors.

CEO Mark Karpeles will likely be investigated in Japan for liability in Mt. Gox’s collapse. A U.S. federal judge asked Karpeles to appear in court Thursday to answer questions about the exchange, but his lawyers said he would not travel to the U.S., citing concerns of a possible detainment.

About the author

Based in San Francisco, Alice Truong is Fast Company's West Coast correspondent. She previously reported in Chicago, Washington D.C., New York and most recently Hong Kong, where she (left her heart and) worked as a reporter for the Wall Street Journal.

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