Feeds

MtGox, that bastion of unregulated e-currency Bitcoin, turns to Texas judge for protection

Bench throws bankruptcy shield around titsup exchange

Next gen security for virtualised datacentres

The embattled MtGox Bitcoin exchange has been thrown a lifeline by a US bankruptcy court in the northern district of Texas – which has shielded the company from litigation.

Judge Harlan Hale granted a motion [PDF] to place the company under Chapter 15 bankruptcy, a classification that will help it fend off, for the time being, lawsuits brought against it by customers in the US.

Under the motion, MtGox will undergo a formal bankruptcy hearing on 1 April where a judge will decide how to proceed, possibly further extending protections for the company as it continues its bankruptcy hearings in Japan.

MtGox has been hit in the US with a pair of lawsuits from former investors, who allege a mishandling of funds.

The Bitcoin exchange, once considered to be among the top facilitators of the crypto-currency's transactions, made headlines last month when it shut down after admitting that it had lost 744,408 BTC to hackers.

Introduced in 2005, Chapter 15 protection is a relatively new class of bankruptcy procedure, which is designed "to provide effective mechanisms for dealing with insolvency cases involving debtors, assets, claimants, and other parties of interest involving more than one country."

The company still faces the threat of litigation in other countries, including a UK case which is said to have hundreds of plaintiffs lined up for a massive class-action suit.

MtGox has said it is looking to relaunch itself after it emerges from bankruptcy proceedings and repay its debts.

The crash of MtGox, and its aftermath, has left the Bitcoin community wondering how such collapses should be handled in a market that has thus far sought to shun government intervention and regulation.

While some have predicted that the collapse would deal a crippling blow to Bitcoin, loyal backers of the currency believe its community can emerge from the incident even stronger than before. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?