REPORT: MtGox To Liquidate

MtGox has asked to liquidate its holdings after a Japanese court dismissed its plan for reorganization, the Wall Street Journal’s Takashi Mochizuki and Katy Stech report.

In February, the exchange, once the world’s largest, claimed that 850,000 Bitcoins had gone missing. In a
new note posted on its website, Gox said that after a month-and-a-half investigation into the disappearance of the funds, Japanese authorities had determined that plans for “civil rehabilitation” under Japanese bankruptcy statutes “appear difficult,” though did provide more details.

Citing sources close to the situation, Mochizuki and Stech report Gox has in effect given up hope of restarting operations in a Chapter 11-style reboot. Any creditors will now recoup less of their investment, the pair write, though they add that Gox retains some hope of a last-minute fire sale. Last week, the Journal reported that a group led by Brock Pierce, a former child actor, had expressed interest in bailing out the exchange.

Read the full report here »

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