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
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
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.