A Japanese court has struck down Mt. Gox’s efforts to reorganize its Bitcoin exchange after filing for bankruptcy, USA Today reports. A court administrator will handle Mt. Gox’s assets, which are likely to be liquidated to pay back creditors.
Mt. Gox went offline in late February just days before it filed for bankruptcy protection. The exchange at one time served as the largest for the Bitcoin community, but the company claims a bug in its system resulted in a loss of several hundred thousand Bitcoins, which equates to hundreds of millions of US dollars.
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As part of the court proceedings, Mt. Gox CEO Mark Karpeles will come under investigation for any responsibility for the debts and missing currency.
Karpeles confirmed in a letter on the Mt. Gox website that “there are no plans for the restart of the business.” Interested customers can also read the FAQ from the court administrator detailing the next steps in the process.