Feeds

MtGox boss Karpeles ordered to Dallas to face bankruptcy probe

Failed Bitcoin exchange CEO must say 'sayonara' to Tokyo

Security for virtualized datacentres

MtGox CEO Mark Karpeles has been ordered by a judge to return to the US to face questions over his bankruptcy filing with a Dallas court and how 750,000 Bitcoins went AWOL.

Bankruptcy judge Stacey Jernigan ruled that Karpeles must appear at the Dallas office of his lawyers Baker & McKenzie on 17th April. This is ahead of a May 20 hearing which will decide whether the Bitcoin exchange will be granted Chapter 15 protection from creditors.

“If he avails himself of this court, my God, he is going to get himself over here,” Jernigan said at a hearing on Tuesday, according to Reuters.

Karpeles filed for bankruptcy in February after admitting his firm, once the world’s biggest Bitcoin exchange, had “lost” 750,000 of its customers’ Bitcoins and 100,000 of its own “due to weaknesses in the system”.

Tokyo-based MtGox then claimed to have found 200,000 in “old format wallets” a few weeks later, which still leaves around 650,000 unaccounted for.

Lawyers told Tokyo District Court that MtGox has debts of ¥6.5bn (£38.1m, $63.8m).

Angry customers, including those who have filed a class action suit against MtGox in a Chicago court, will be hoping Chapter 15 protection is not forthcoming next month.

They’re owed over $400m in lost Bitcoins and will be further irked by recent reports citing “current and former employees” which claim some of this cash may have been “diverted to cover operating costs”. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
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?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.