| June 17
June 17 The failed Tokyo-based bitcoin exchange,
Mt Gox, received court approval on Tuesday to begin Chapter 15
bankruptcy proceedings in the United States as it awaits
approval of a settlement with U.S. customers and a sale of its
Mt Gox was once the world's leading exchange for trading the
digital currency, but shut its website earlier this year after
saying it lost some 850,000 bitcoins - worth more than $500
million at current prices - in a hacking attack.
It subsequently said it found 200,000 bitcoins.
The company filed for Chapter 15 bankruptcy protection in
March to prevent U.S. customers who had filed a class action
lawsuit from seizing its U.S. assets, such as computer servers,
and demanding evidence and access to Mt Gox executives.
Since then, the company and the class action plaintiffs
reached a settlement, which is awaiting final approval by a
federal court in Chicago.
Judge Stacey Jernigan of the U.S. Bankruptcy Court in Dallas
granted recognition of the Chapter 15 case, which allows Mt
Gox's foreign representative to file lawsuits and pursue
potential funds to repay creditors.
Under the deal, U.S. and Canadian customers will split the
200,000 bitcoins held by Mt. Gox and share in a 16.5 percent
stake after Mt. Gox is sold.
Sunlot, a firm backed by child actor-turned entrepreneur
Brock Pierce and venture capitalist William Quigley, has
proposed buying Mt Gox for one bitcoin, or around $600.
The Sunlot deal must be approved by the Tokyo District Court
overseeing its bankruptcy.
(Reporting by Tom Hals in Wilmington, Delaware; Editing by Eric