Troubled Bitcoin exchange Mt Gox has abandoned all plans to rebuild and will go into liquidation. The Wall Street Journal reported that the exchange is asking for permission to liquidate from a Tokyo court as it now views that its plans to exit bankruptcy protection are too complex and unrealistic.This news comes as Mt Gox founder Mark Karpeles is refusing to travel back to the United States to respond to a subpoena from the Treasury Department. Karpeles claimed that his lawyers need time to ‘get up to speed’ on the proceedings, and he will only return when they are ready to properly represent him.
Customers stand to lose a substantial amount if the exchange does go into liquidation, although the theft of 750,000 BTC has already left many taking on massive losses. One source claims that Mt Gox is still looking for a buyer; even if the company were sold, creditors would still receive a substantially reduced sum over what they had initially lost.
The Tokyo court has yet to respond to the request, but if it does go through a trustee will take over the company’s assets from Karpeles and begin winding down the company.
[Source: The Verge, Ars Technica, Wall Street Journal]
Follow us on Instagram, Facebook, Twitter or Telegram for more updates and breaking news.
