MtGox wins move of representative's deposition after refusing travel

By Kali Hays

New York, April 17 - MtGox Co. Ltd. received court approval to reschedule the April 17 deposition of its foreign representative, Robert Marie Mark Karpeles, to May 5, according to an April 17 order with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, MtGox asked for the deposition to be rescheduled as Karpeles refused to travel to the United States for the deposition following his receipt of a subpoena from the Department of the Treasury Financial Crimes Enforcement Network that required him to appear in Washington, D.C., on April 18.

The court based its decision on the April 16 status conference with the company and "recent developments in the Japan proceeding," according to the order.

As reported, the company was placed in provisional administration after the Tokyo District Court decided to dismiss the company's application for civil rehabilitation.

An ongoing investigation related to the disappearance of company bitcoins and funds, coupled with the difficulty the company is having in drafting and adopting a plan of rehabilitation, led to the Tokyo court ordering the provisional administration.

The Tokyo court also prohibited payments and asset dispositions and ordered company assets to be distributed by the appointed administrator, Nobuaki Kobayashi, under the court's supervision.

Objections to the rescheduling of Karpeles' deposition from creditors Gregory Green and Joseph Lack will be addressed at another status conference scheduled for April 24.

A hearing on Green and Lack's motion to terminate the company's provisional relief is scheduled for May 6.

MtGox is a Tokyo-based online bitcoin exchange operator. The company filed Chapter 15 bankruptcy on March 9 under case number 14-31229.

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