Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comKey Contacts
Back
The Mt. Gox exchange has been the largest financial exchange for Bitcoin throughout most of the currency’s existence. All of that changed in recent weeks, when a error in the exchange’s transaction protocol led Mt. Gox to halt all Bitcoin withdrawals, according to The New York Times.
On Monday, Feb. 24, the exchange appeared to be on the verge of collapse, and that night, a number of other exchanges told the news source that Mt. Gox would shortly be filing for protection under the bankruptcy law as a result of months of uncertainty and a major theft. An unverified document circulating through the Bitcoin world claimed that the exchange had lost about 744,000 Bitcoins – roughly 6 percent of the 12.4 million Bitcoins in global circulation.
The day before, the financial institution’s chief executive, Mark Karpeles, resigned from his position at the board of the Bitcoin Foundation, a nonprofit digital currency advocacy group, according to The New York Times.
While users have been selling rights to Bitcoins trapped on the Mt. Gox exchange for well below market price, the most recent price for the currency is at $515.67 as of 2:30 p.m. EST on Feb. 25, according to the Coindesk Index.
As of 10:30 p.m. EST, on Feb. 24 the Mt. Gox exchange was offline, and users navigating to the site were met with a blank page, according to Re/code. It remains unclear whether holders of coins trapped in the Mt. Gox exchange will able to retrieve the coins or fiat currency held by the exchange. Re/code was unable to independently verify with Mt. Gox whether it would be filing for protection under the bankruptcy law, as the exchange is currently refraining from making public comment.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Author: Michael Mietlicki
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Author: Sean M. Pena
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Author: Donald M. Pepe
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
Author: Chris Seelinger
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.