Mt. Gox's Chapter 15 Bankruptcy Won't Stop US Class Action, Lawyer Says
A US bankruptcy judge in Dallas, Texas, granted Mt. Gox's request for Chapter 15 bankruptcy protection on 10th March, a move that will partly shield the troubled Japan-based bitcoin exchange's assets from creditors and block at least two lawsuits against the business. While this may seem like a setback for those hoping to recoup lost funds from the exchange, Edelson law firm partner Chris Dore has suggested that the ruling only protects Mt. Gox KK, its Japan-based entity, from further action, not all of its associated legal entities. Dore, whose firm is representing the US class action....
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Troubled Japan-based bitcoin exchange Mt. Gox has filed for Chapter 15 bankruptcy protection, an ancillary form of bankruptcy that will complement its primary Tokyo District Court claim issued on 28th February. US Chapter 15 bankruptcy provides specific protections in cases of cross-border insolvency, and is based on UN model law. Both Japan and the US have adopted Chapter 15 bankruptcy in an effort to better protect the interests of shareholders and maximize the value of debtor assets in cross-border bankruptcies. At the time of its filing, Mt. Gox claimed an outstanding debt of ¥6.5bn....
Following a filing for bankruptcy protection in Japan in late February (read more about that here), the troubled Tokyo-based exchange has reportedly filed for Chapter 15 bankruptcy protection at the U. S. Bankruptcy Court in Dallas, Texas, according to a number of reports (In re MtGox Co. Ltd., 14-bk-31229, U. S. Bankruptcy Court, Northern District of [Dallas] Texas). The move may, for the time being, put US-based legal action against the exchange on-hold - which will prevent Gox from spending presumably a large sum in legal fees defending themselves from a lawsuit filing in a Chicago....
Mt Gox, the failed Bitcoin exchange, based in Tokyo, that has been granted bankruptcy protection in the US. Tom Hals, writing for Reuters, "the World's leading source of intelligent information," reported yesterday that Mt. Gox had successfully applied for, and been granted, bankruptcy protection. The failed exchange will now attempt to initiate full Chapter 15 bankruptcy proceedings in the United States as it awaits approval of a settlement with U. S. customers and a sale of its business. Mt Gox was once the world's leading exchange for trading the digital currency, but shut its website....
Bitcoin mining hardware manufacturer HashFast has formally entered Chapter 11 bankruptcy following a court ruling. The US bankruptcy court granted the company's request on 7th June after it filed for bankruptcy protection two days earlier. The move closes a turbulent chapter in HashFast's history, nearly a month after laying off half of its workforce and publicly denying that it was filing for bankruptcy. According to a 10th June blog post, the company is now in the process of reorganizing under Chapter 11. Most notably, CEO Eduardo DeCastro has resigned from his position as part of a....