Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comKey Contacts
Back
U.S. Bankruptcy Judge Stacey Jernigan approved Mt. Gox’s filing for protection under Chapter 15 of the bankruptcy law in Dallas on June 17, according to Bidness Etc. The beleaguered bitcoin exchange closed down earlier this year after losing over $300 million worth of the cryptocurrency.
Under its Chapter 15 filing, Mt. Gox will be able to commence with liquidating assets and paying back its creditors, according to the news source. After filing a class action lawsuit, the Tokyo-based exchange’s former customers agreed to split the 200,000 recovered bitcoins that were found after the initial announcement in February that Mr. Gox had lost 800,000 bitcoins.
At press time, each bitcoin was worth $604.45, according to the CoinDesk Index.
According to CoinDesk, the ruling allows Japanese courts – including Japanese bankruptcy trustee Nobuaki Kobayashi – to take a stronger role in distributing assets and considering any plans at reviving the exchange. A number of companies have expressed interest in reviving the Mt. Gox exchange, including Sunlot Holdings, CoinLab and OKCoin.
Before the crash, Mt. Gox was the largest bitcoin exchange in the world, with roughly 80 percent of all global trades passing through its network. There have been several theories as to what happened to the disappeared coins, and lawyers for the international class of ex-exchange users have indicated that they will pursue further action against CEO Mark Karpeles, according to the news source. More recent evidence has suggested a two-year long cyber attack, which stole bitcoins from the Mt. Gox platform.
The Mt. Gox exchange resulted in a crash in value for bitcoin that is visible on the CoinDesk Index data for early February. Trading at a local high of $854.37 on Feb. 2, bitcoin dropped to $676.91 by Feb. 8.
Click to read to get the entire story on Mt. Gox’s bankruptcy.
If you have any questions about this post or would like to discuss your company’s creditors’ rights and bankruptcy matters , please contact me, Joel R. Glucksman at ScarinciHollenbeck.com.
- Practices: Corporate Transactions & Business
- 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
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
Author: George McGowan
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan
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.