Topic: Mt. Gox Files for Chapter 15 US Bankruptcy Protection (Read 543 times)

Agreed. ridiculous.

This filing is likely because they know they will be denied "civil rehabilitation."



I wonder if the Japanese authorities know he has a history of financial crimes when he was younger.

http://johnbercow.tumblr.com/post/78352765925/mt-gox-guy-mark-karpeles-went-to-jail-before-for


He also scammed a French out of $30,000, which he used to purchase MtGox.
(the scammee took years to track him down and sue him in Japanese Court, which he won...)

" A €5,000 ($6,870 USD) down payment is placed.  Mr. Karpelès returns several months later with bad news.  His hired graphics artist failed to complete a subcontract on time, so the first stage of the three-step development process was stall...."
 
 "That was a complete lie.  According to court records, Mr. Karpelès could never provide any evidence that there was a subcontractor.  By all appearances he had simply taken Mr. Dubois' money, done no work, and then invented a fantasy to cover himself."


http://www.dailytech.com/Bitcoin+King+Mt+Gox+CEO+Mark+Karpels+History+of+Arrests+Firings/article34442.htm
http://www.dailytech.com/Bitcoin+King+Pt+II+Mt+Goxs+Dictator+Karpels+Proves+Tragically+Flawed/article34452.htm

hope the victims grouping together for a legal battle atleast show proof that the funds were still under karpales control in March. i totally facepalm the fact that governments beleive that karpales is innocent and deserves protection.

hopefully the guy at the SEC that got pirate arrested can also help, as he seems to know enough about bitcoin to see the evidence for what it is.

no wonder why people hate governments. arresting people for not paying a parking ticket. but letting a multimillion dollar extortionist get protection from the government

http://www.coindesk.com/mt-gox-files-chapter-15-us-bankruptcy-protection/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CoinDesk+%28CoinDesk+-+The+Voice+of+Digital+Currency%29

Troubled Japan-based bitcoin exchange Mt. Gox has filed for Chapter 15 bankruptcy protection, an ancillary form of bankruptcy that will complement its primary Tokyo District Court claim issued on 28th February.

US Chapter 15 bankruptcy provides specific protections in cases of cross-border insolvency, and is based on UN model law. Both Japan and the US have adopted Chapter 15 bankruptcy in an effort to better protect the interests of shareholders and maximize the value of debtor assets in cross-border bankruptcies.

At the time of its filing, Mt. Gox claimed an outstanding debt of ¥6.5bn ($63.6m), and indicated that 850,000 bitcoins had been lost or stolen from its exchange.

This is just the latest development in the ongoing legal case against Mt. Gox. Shortly after its original Japan filing, a US class action suit was mounted by Colorado-based Edelson law firm, which specializes in technology cases. The lawsuit is seeking damages, alleging that Mt. Gox was negligent for failing to provide adequate security to its customers.

Edelson did not respond to comments requesting more information on how this filing could affect its case.

What is Chapter 15 bankruptcy?

Upon qualifying for Chapter 15 protection in the US, certain relief could become available to Mt. Gox, including the granting of an “automatic stay” that would prevent creditors from seizing its US assets, though Mt. Gox would have to request such an arrangement in writing. The presiding bankruptcy judge would have the final say on granting the relief.

For more information on Chapter 15 bankruptcy filings, read a full overview here.

Next steps

Following the filing, a recognition hearing will typically be held within 30 days to determine whether the case is a “foreign main” or “foreign non-main” proceeding, distinctions that would affect the handling of the case. Mt. Gox may not necessarily have protection in the interim period before the hearing.

After the determination is made at the hearing, Mt. Gox would be able to carry out its main purpose in filing, which can include liquidating assets, approving its sale or assigning its leases in the US.

Mt. Gox indicated recently in a post on its website that it planned to restructure and restore the business in order to increase repayments to its creditors.