Mt. Gox files for US bankruptcy to halt class-action suit

The company is trying to temporarily halt a US lawsuit as a Tokyo court works through its bankruptcy

Mt. Gox, the Tokyo-based Bitcoin exchange that collapsed last month after the loss of around $474 million worth of Bitcoins, has filed for bankruptcy protection in the U.S.

The petition, made late Sunday in the U.S. Bankruptcy Court in Dallas, will be heard later Monday -- a day before a court in Chicago is expected to rule on whether a U.S. class-action lawsuit can proceed against the company.

If successful in its Dallas filing, lawsuits in the U.S. against the company would be temporarily halted.

That would give Mt. Gox a little breathing room while the Tokyo District Court works through the collapse of the company and how best to proceed with bankruptcy.

The Chicago case is one of two that have been filed against Mt. Gox. A second case was filed in May 2013 by Coinlab alleging breach of contract.

Mt. Gox was once the largest Bitcoin trading exchange in the world, offering a platform where customers could buy and sell the virtual currency for real-world cash.

But that all came to a halt Feb. 25 when the company suspended trading and admitted it had lost around 750,000 Bitcoins owned by customers and around 100,000 of its own. An investigation into the loss is ongoing, but the company has said it believes a flaw in the Bitcoin software allowed an unknown party to steal the Bitcoins.

The filing estimates the company has more than 100,000 creditors, assets of ¥6.5 billion (US$63 million) and liabilities of ¥3.84 billion.

It was made on behalf of Mt. Gox by Mark Karpeles, the company's sole board member. Mt. Gox has two shareholders: Tibanne Co. Ltd., which owns 88 percent, and an individual, Jed MacCaleb, who holds 12 percent. MacCaleb developed the software that ran the service.

The case is 14-31229, MtGox Co. Ltd., in the U.S. Bankruptcy Court for the Northern District of Texas.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is

Join the CSO newsletter!

Error: Please check your email address.

Tags Mt. Goxe-commercesecurityencryptioninternet

More about IDG

Show Comments

Featured Whitepapers

Editor's Recommendations

Solution Centres

Stories by Martyn Williams

Latest Videos

  • 150x50

    CSO Webinar: The Human Factor - Your people are your biggest security weakness

    ​Speakers: David Lacey, Researcher and former CISO Royal Mail David Turner - Global Risk Management Expert Mark Guntrip - Group Manager, Email Protection, Proofpoint

    Play Video

  • 150x50

    CSO Webinar: Current ransomware defences are failing – but machine learning can drive a more proactive solution

    Speakers • Ty Miller, Director, Threat Intelligence • Mark Gregory, Leader, Network Engineering Research Group, RMIT • Jeff Lanza, Retired FBI Agent (USA) • Andy Solterbeck, VP Asia Pacific, Cylance • David Braue, CSO MC/Moderator What to expect: ​Hear from industry experts on the local and global ransomware threat landscape. Explore a new approach to dealing with ransomware using machine-learning techniques and by thinking about the problem in a fundamentally different way. Apply techniques for gathering insight into ransomware behaviour and find out what elements must go into a truly effective ransomware defence. Get a first-hand look at how ransomware actually works in practice, and how machine-learning techniques can pick up on its activities long before your employees do.

    Play Video

  • 150x50

    CSO Webinar: Get real about metadata to avoid a false sense of security

    Speakers: • Anthony Caruana – CSO MC and moderator • Ian Farquhar, Worldwide Virtual Security Team Lead, Gigamon • John Lindsay, Former CTO, iiNet • Skeeve Stevens, Futurist, Future Sumo • David Vaile - Vice chair of APF, Co-Convenor of the Cyberspace Law And Policy Community, UNSW Law Faculty This webinar covers: - A 101 on metadata - what it is and how to use it - Insight into a typical attack, what happens and what we would find when looking into the metadata - How to collect metadata, use this to detect attacks and get greater insight into how you can use this to protect your organisation - Learn how much raw data and metadata to retain and how long for - Get a reality check on how you're using your metadata and if this is enough to secure your organisation

    Play Video

  • 150x50

    CSO Webinar: How banking trojans work and how you can stop them

    CSO Webinar: How banking trojans work and how you can stop them Featuring: • John Baird, Director of Global Technology Production, Deutsche Bank • Samantha Macleod, GM Cyber Security, ME Bank • Sherrod DeGrippo, Director of Emerging Threats, Proofpoint (USA)

    Play Video

  • 150x50

    IDG Live Webinar:The right collaboration strategy will help your business take flight

    Speakers - Mike Harris, Engineering Services Manager, Jetstar - Christopher Johnson, IT Director APAC, 20th Century Fox - Brent Maxwell, Director of Information Systems, THE ICONIC - IDG MC/Moderator Anthony Caruana

    Play Video

More videos

Blog Posts