Mt. Gox suitors seek support to save bitcoin exchange

Sat Apr 19, 2014 4:16am IST

Bitcoin themed stickers stand attached to glass doors during the Inside Bitcoins: The Future of Virtual Currency Conference in New York April 8, 2014. REUTERS/Lucas Jackson

Bitcoin themed stickers stand attached to glass doors during the Inside Bitcoins: The Future of Virtual Currency Conference in New York April 8, 2014.

Credit: Reuters/Lucas Jackson

Related Topics

(Reuters) - A group of investors seeking to buy Mt. Gox has launched a website to garner support from creditors of the bankrupt bitcoin exchange to prevent a liquidation of its assets.

"We need your help to stop a liquidation, which would be good neither for Mt. Gox creditors nor bitcoin's reputation with the general public and regulators," the investors wrote on the website. (r.reuters.com/jeh68v)

Mt. Gox, once the world's biggest bitcoin exchange, is likely to be liquidated after a Tokyo court dismissed the company's bid to resuscitate its business, the court appointed administrator said on Wednesday.

"The Tokyo district court recognized that it would be difficult for the company to carry out the civil rehabilitation proceedings and dismissed the application for the commencement of the civil rehabilitation proceedings," he said.

The investor group, which offered to take over the assets of Mt. Gox and revive it, has received backing from many creditors and hopes to convince the court to reconsider its rehabilitation proposal, the Wall Street Journal reported on Thursday. (r.reuters.com/keh68v)

Mt. Gox has about 127,000 creditors.

The exchange filed for bankruptcy protection in Japan in February, saying it may have lost nearly half a billion dollars worth of the virtual coins due to hacking.

Mark Karpeles, the chief executive of Mt. Gox, said he would not come to the United States to answer questions about the bankruptcy case, Mt. Gox lawyers told a U.S. federal judge on Monday.

(Reporting by Supantha Mukherjee and Sampad Patnaik in Bangalore; Editing by Sriraj Kalluvila and Steve Orlofsky)

FILED UNDER:

Tech Wrap

Reuters Showcase

Indian Healthcare

Indian Healthcare

Exclusive - Payment delays dent India's flagship health, AIDS programmes  Full Article 

India-Pakistan Ties

India-Pakistan Ties

Indian, Pakistani foreign secretaries to meet in Islamabad.  Full Article 

Food Security

Food Security

India will not cut multi-billion dollar food handout programme - PM   Full Article 

Ola's Expansion Drive

Ola's Expansion Drive

Taxi group Ola steps up expansion drive  Full Article 

Controversial Film

Controversial Film

Film on 2012 Delhi gang rape stokes debate on Indian male mindset  Full Article 

Sahara Saga

Sahara Saga

Sahara's Grosvenor House hotel in London put up for sale   Full Article 

Beef Trade

Beef Trade

Maharashtra clamps down on beef trade through new act  Full Article 

Environment Concerns

Environment Concerns

Deforestation could shift monsoons, leaving India high and dry.  Full Article 

 'Smart Cities'

'Smart Cities'

India's 'smart cities' would be stupid without disaster strategy  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage