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Author Topic: [2014-03-10] Mt. Gox files for bankruptcy in U.S.  (Read 630 times)
Viceroy
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March 10, 2014, 01:19:48 PM
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Summary: The Japan-based Bitcoin exchange files Chapter 15 bankruptcy paperwork in the U.S. in efforts to protect its remaining assets, while opening up international channels of co-operation.

http://www.zdnet.com/mt-gox-files-for-bankruptcy-in-u-s-7000027136/

Bitcoin exchange Mt. Gox has filed for Chapter 15 bankruptcy proceedings in the United States.

The once-dominant Bitcoin trading post filed for Chapter 15 in the U.S. on Sunday. This particular chapter of the U.S. bankruptcy code deals with insolvency cases that spread across more than one country.

On 28 February, Tokyo-based Mt. Gox filed for bankruptcy protection in Japan. However, by filing for Chapter 15 in the United States, foreign debtors and parties are able to use the U.S. Bankruptcy Courts and systems. This means that Mt. Gox's insolvency now reaches beyond the confines of Tokyo, and the U.S. is able to work with other countries and connected parties around the world in order to better solve the case and protect the interests of all creditors as well as Mt. Gox and its remaining assets.

As Mt. Gox accounts for investors worldwide, it makes sense that this secondary bankruptcy filing has occurred. Through Chapter 15, the U.S. Bankruptcy Court will generally defer to the actions of a foreign court -- in this case, in Japan, as the primary place for bankruptcy procedures. However, when circumstances do not violate laws or public policy in the U.S., Chapter 15 also allows aid to be offered to the foreign company filing for bankruptcy protection.

The Bitcoin exchange shut down abruptly last month, closing its Twitter feed and rendering itself mute for over a week before announcing that Mt. Gox was closing its doors. In total, according to Mt. Gox's announcement that it was filing for Japanese bankruptcy protection (.PDF), approximately 750,000 Bitcoins deposited by users and 100,000 Bitcoins belonging to Mt. Gox disappeared, which is worth roughly $500 million in today's trading rates.

Mt. Gox CEO Mark Karpeles said the loss -- taking place over several years -- was due to "weaknesses in the system" which allowed cyberattacks and Bitcoin theft to occur.

Over the weekend, anonymous hackers claimed to have broken in to Mt. Gox systems and lifted apparent evidence that customer investments were not the target of theft, but instead are still being held at the exchange as part of a fraudulent plot by Mt. Gox management.

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March 10, 2014, 05:54:40 PM
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So much news... so little information...

Coinbase for selling BTCs or Vircurex for trading alt cryptocurrencies like DOGEs
CoinNinja for exploring the blockchain.
PM me with any questions on these sites!  Happy to help!
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March 10, 2014, 07:10:15 PM
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I have said it before and I will say it again....

FUCK Mt Gox




I am actually ELATED that I had such a shitty experience with them right off the bat. They locked my account before I ever put a dime and and tried to make me jump thru fucking rings of fire to open it back up so I said fuck this and NEVER did any business with Gox. Thus far I am pleased with LocalBitcoins, BTC-E and Coinbase but this event does have me shit scared of any funds stored online .


PS Check this out from BTC-E, a message they released after the Gox disaster

(I am still a bit scurred from Gox, but it is very nice to see them put in print that they keep 100% of BTC and FIAT in reserve at all times)



BTC-e Statement regarding MtGox possible insolvency
25.02.14 17:31 from admin

Dear BTC-e.com participants,

We are concerned by MtGox shutdown and would like to assure you that:

1. MtGox losses do not affect account balances or the operation of BTC-e in any way.

2. We confirm the Bitcoin system operation and its exciting prospects, and MtGox bankruptcy has not been caused by any underlying technical problems of Bitcoin. Bitcoin international peer-to-peer network and cryptocurrency are independent of actions of a single market participant. Bitcoin protocol continues to function exactly as it should. The cryptocurrency maintains its stability and the network will continue to develop and exist as long as required by its users.

3. At BTC-e we are constantly monitoring Bitcoin accounts and FIAT reserves. At BTC-e we continue to maintain all clients’ assets in full – both Bitcoin and FIAT.

4. BTC-e has no vulnerabilities during client transactions as we use safe and proven transaction protocols. All transaction issues reported by our clients undergo a thorough check.


The safety of client funds and transactions is of ultimate importance for the company, and this is the reason why we have been an industry leader for the last three years.

1. BTC-e is at its peak of financial strength with the record levels of clients and capital adequacy. The company plans to start publishing financial statements, verified by an external audit, on a regular basis.

2. The highest levels of security are already in place at BTC-e, and the company regularly uses external professional advice to further increase the security of our clients.

3. BTC-e is the only exchange to offer a modern trading platform, MetaTrader 4, to its clients, and many other exciting projects and further upgrades are in the pipeline.

The company plans to soon begin to publish publicly available statements certified by external auditors.

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March 13, 2014, 04:44:29 AM
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makes no sense
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March 15, 2014, 03:48:52 AM
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They filed for "Protection", including the "release of seized assets, for use in rehabilitation." (Eg, so they can open-up and continue to operate, to pay-back losses to users and creditors, and operate for profit.)

Gox will be open soon. Doing business as always.

I hate when people quote things out of text, to make it look bad, on purpose. Bankruptcy and bankruptcy protection are NOT the same. One absolves you of debt, one frees you of assets and protects you from being sued by vampires who want to take OUR money. This is the latter one.

That is stopping things like this from happening...
We have hundreds in Gox (Totaling millions as users)
Some have millions in Gox (They TRY to sue, to get their millions, screwing US.)
{That would be creditors and users}

Protection stops them from being able to sue, essentially saying they have to wait, just like we have to wait. (For equal valued loss, or for equal repayment. Gox is going for the latter. It also allows Gox to use some remaining funds to pay bills that are due, needed to operate the company.)
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