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
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: George McGowan
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
How to Effectively Use Contracts to Manage Risk
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Author: George McGowan
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
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.