Tokyo court starts Mt. Gox bankruptcy proceedings

TOKYO — Bankruptcy proceedings began Thursday for the Mt. Gox bitcoin exchange, a move widely expected after Tokyo District Court decided this month that the company would not be able to resurrect itself.

An administrator will try to sell assets, but many creditors, including those who had bitcoins on the exchange, might not get their money back.

After Mt. Gox went offline in February, chief executive Mark Karpeles said bitcoins worth several hundred million dollars were unaccounted for.


In the bankruptcy proceedings, Karpeles’ liability will be investigated, Mt. Gox said.

Get Today's Headlines in your inbox:
The day's top stories delivered every morning.
Thank you for signing up! Sign up for more newsletters here

Mt. Gox has suggested the bitcoins were stolen. It has not been able to confirm its users’ bitcoin balances; although they can look at a balance on a website that is no guarantee for a claim, Mt. Gox said.

The exchange said in a statement that a meeting for creditors will be held in July, and a report of its outcome will be shared on its website for those who can’t attend.

Bitcoins are used for transactions across borders without third parties such as banks and have become a popular investment.