Business
    Next Score View the next score

    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.

    Advertisement

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

    Get Talking Points in your inbox:
    An afternoon recap of the day’s most important business news, delivered weekdays.
    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.