Feeds

MtGox boss Karpeles ordered to Dallas to face bankruptcy probe

Failed Bitcoin exchange CEO must say 'sayonara' to Tokyo

Designing a Defense for Mobile Applications

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”. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
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.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.