Mt Gox receives U.S. bankruptcy protection

|By:, SA News Editor

Mt Gox, the failed Tokyo-based bitcoin exchange, is now able to file Chapter 15 bankruptcy proceedings in the U.S. after receiving court approval.

In February, Mt Gox said it suffered a hacking attack resulting in a loss of 850k bitcoins (BITCN, BTCS) - around $500M in current prices. After the website shutdown, the company filed for bankruptcy to protect its U.S. assets.

The company is now awaiting approval for a settlement and the sale of its business. In March, Mt Gox found 200k of its lost bitcoins, and is now trying to reach a deal to split up the coins with U.S. customers, in addition to a 16.5% stake after Mt. Gox is sold.