From PC World: Bitcoin exchange Mt. Gox has abandoned its bid for revival and filed for liquidation with a Japanese court, The Wall Street Journal reported Wednesday.
Tokyo-based Mt. Gox, once the world’s largest trading place for the digital currency, collapsed in February with liabilities of ¥6.5 billion ($63.6 million), saying nearly half a billion dollars worth of bitcoin was unaccounted for and that hackers had exploited a software problem.
It has asked the Tokyo District Court to allow it to be liquidated, the newspaper reported, citing people familiar with the situation.
Lawyers for Mt. Gox were not available to comment. A staffer at the Mt. Gox customer call center said he had no information about court developments. A spokesperson at the Tokyo District Court said he could not give any information about the case.
The people cited by the report said rehabilitation was not seen as viable because of the complexity of dealing with customers of the exchange spread around the world, as well as a lack of a workable rehabilitation plan.
The exchange was still holding out hope for a potential buyer, the paper reported, adding that future earnings could be used to repay creditors.
If Mt. Gox receives approval for liquidation, the process will likely be slow and messy, according to bankruptcy lawyer Kazuaki Nagai.
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