MtGox bankruptcy proceedings launched by Tokyo court; trustee named

By Caroline Salls

Pittsburgh, April 24 - MtGox Co., Ltd. said the Tokyo District Court issued an order beginning its bankruptcy proceedings on April 24.

According to a news release, Nobuaki Kobayashi was appointed as bankruptcy trustee.

The trustee said he has the exclusive power and authority to administer and dispose of MtGox's assets, and he will implement the bankruptcy proceedings, including the administration and realization of the company's assets and the investigation of claims.

Specifically, the trustee said the assets of the bankrupt entity will be converted into cash. If funds for a distribution are secured, a liquidating distribution will be made.

A creditors' meeting is scheduled for July 23.

As previously reported, MtGox's civil rehabilitation proceeding was dismissed last week, at which time the company was placed in provisional administration.

The company said an investigation related to the disappearance of bitcoins and missing funds has been ongoing since the rehabilitation proceeding was filed in late February. MtGox said the investigation will take some time, and there are currently no prospects for the restart of the business.

In addition, the company said on April 16 that it is in negotiations with sponsor candidates, but the selection process has not yet begun.

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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