Feeds

MtGox boss Karpeles ordered to Dallas to face bankruptcy probe

Failed Bitcoin exchange CEO must say 'sayonara' to Tokyo

Remote control for virtualized desktops

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”. ®

Intelligent flash storage arrays

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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?
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.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.