Bitcoin exchange MtGox placed in administration

April 17, 2014 - 12:22:18 am

TOKYO: Failed Bitcoin exchange MtGox was placed in administration by a Japanese court yesterday, with an order for bankruptcy expected to be issued soon, its administrator and chief executive said.

“The Tokyo District Court decided today to dismiss the application for commencement of a civil rehabilitation and at the same time, an order for Provisional Administration was issued,” a statement from CEO Mark Karpeles said. “Attorney-at-law Nobuaki Kobayashi (Superviser and Examiner under the Civil Rehabilitation Procedure) was appointed Provisional Administrator.” 

The move means Karpeles, the controversial founder of what was at one time the world’s biggest trading place for the virtual currency, will cede control of the company to Kobayashi.

“I, as the provisional administrator, will administer the assets of the company under the supervision of the Tokyo District Court,” said a statement in Kobayashi’s name posted on the MtGox website.

“I will strive to fairly and equitably administer the company’s assets, both domestically and internationally, by attempting to utilise certain foreign procedures, including a Chapter 15 filing in the US.” AFP