Mt Gox to be liquidated

CEO Karpeles to face Japan investigation

Tags: JapanMt Gox (mtgox.com)USA
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Mt Gox to be liquidated Karpeles declined to visit the US to answer questions on his company’s collapse. (Getty Images)
By  Stephen McBride Published  April 16, 2014

Mt Gox CEO Mark Karpeles could face an investigation in Japan over the collapse of the Tokyo-based firm, which is expected to be liquidated, Reuters reported.

A Tokyo court has denied a bid by the beleaguered bitcoin exchange to resume its business operations. A court-appointed provisional administrator, lawyer Nobuaki Kobayashi, released a statement in which he said Karpeles liability as director of the failed business would likely be investigated.

"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.

In late February Mt. Gox filed for bankruptcy in Japan, having previously done so in the US, to protect itself from creditors, after it admitted to the loss of 850,000 bitcoins ($454m at today's rates) following the exploitation of a flaw in the bitcoin software platform. The company subsequently claimed to have found 200,000 of those bitcoins.

In early April a US judge directed Karpeles to appear at a deposition hearing in Dallas, Texas, in the matter of the company's US bankruptcy case, but his lawyers this week indicated he was not willing to do so.

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