US Bankruptcy Court Set to Weigh in on Bitcoin's Currency Status
A California bankruptcy court is set to weigh in on whether bitcoin should be considered a currency. The hearing, set for 19th February, follows months of legal wrangling between the trustee of bankrupt bitcoin mining firm HashFast and Marc Lowe, a former promoter for the service who operated under the handle 'cyberdoc'. Trustee Michael Kasolas filed suit against Lowe in February of last year, seeking to recoup 3,000 bitcoins that had been paid by HashFast to Lowe for promoting the service, including a series of posts on the Bitcoin Talk forum. The trustees alleged that Lowe was an insider....
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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....
This document on the Mt. Gox website announces the Tokyo court ruling, ordering bankruptcy proceedings for the exchange. The Mt. Gox website got updated with a new document. The Tokyo District Court ordered liquidation to begin at the failed Bitcoin exchange. This definitive order follows an earlier announcement made last week, where the bankruptcy administrator said it would be difficult to get Mt. Gox started again. "At 5 p.m. on April 24, 2014, the Tokyo District Court issued an order of commencement of the bankruptcy proceedings for MtGox Co., Ltd. (the "Company") (Case No.: Heisei....
Bitcoin mining hardware manufacturer HashFast has avoided being forced into involuntary Chapter 7 bankruptcy proceedings by signing a deal with its creditors. Under the deal, signed in a federal bankruptcy court in San Francisco, HashFast will commit to an accelerated restructuring in order to meet its obligations. Mining company Liquidbits sought court approval last week for HashFast to enter an involuntary bankruptcy in order to recoup funds lost after HashFast failed to deliver on a $6m order. Ars Techina reported that HashFast is now able to resume part of its business. However, the....
Former Mt. Gox partner CoinLab is reportedly backing disgraced bitcoin exchange Mt. Gox's attempts to get bankruptcy protection here in the United States, the Wall Street Journal reports. Court documents from last Friday indicate that they won't object to Gox's request for bankruptcy protection, and interesting development given the company hinted earlier at being against the scenario. Judge Stacey Jernigan of the bankruptcy court in Dallas, Texas has not yet given the former exchange's bankruptcy case the go-ahead, something Mt. Gox trustee Nobuaki Kobayashi says would give him more....
A US bankruptcy court has rejected a filing from Seattle-based digital currency service CoinLab Inc. in the latest development in the case of failed Japan-based bitcoin exchange Mt. Gox. CoinLab sought to stop investor group Sunlot Holdings from purchasing Mt. Gox in documents filed during a 27th May hearing in US Bankruptcy Court in Dallas, Texas. According to The Wall Street Journal, CoinLab's filing was complicated when Mt. Gox's lawyers stated that the deal involving Sunlot had not been given any special status by the courts, and that as such, other offers regarding the ownership and....