The Company files for U.S. bankruptcy protection in Dallas late Sunday saying without protection it will spend substantial funds defending itself against Gregory Greene’s class action. Greene is scheduled to ask a federal judge on March 11 to freeze Mt. Gox’s U.S.-based servers and other computer equipment and to set up a trust over Mt. Gox’s U.S. assets. The Chapter 15 filing allows Mt. Gox to ask the U.S. Bankruptcy Court to recognize its foreign bankruptcy and to assist in the Japanese proceedings by protecting its U.S.-based assets. U.S. creditors can contest Mt. Gox’s request for Chapter 15 protection.
Mt. Gox officially files for bankruptcy protection with outstanding debts of ¥6.5bn ($63.6m), against assets of ¥3.8bn ($37.4m). A notice posted on their website admits that “although the complete extent is not yet known”, 750,000 of its customers’ bitcoins and 100,000 of the company’s own have “disappeared” due to “illegal access through the abuse of a bug in the bitcoin system”. At this time they “cannot confirm the exact amount of missing deposit funds and the total amount of bitcoins which disappeared.”
In order to increase repayments to our creditors, it is necessary to explore the possibility of having MtGox Co., Ltd. continue its business. This is why the civil rehabilitation procedure has been chosen, rebuilding MtGox Co., Ltd under the supervision of the court in a legally organized procedure while giving proper explanations will not be for the sole benefit of the company but for that of the whole bitcoin community.