The court sanctioned investigation into why the bitcoin exchange fell apart and whether it should be resurrected under bankruptcy protection laws. Mt. Gox’ recent update on the issue revealed that the deadline for the investigation has been extended to May 9th.
Nobuaki Kobayashi who is a partner at Nagashima Ohno & Tsunematsu was ordered by the court to report his findings on the collapse of one of the largest bitcoin exchanges. The Tokyo District Court had placed a Friday deadline which has now been extended to over a month. According to the petition filed to the court, Kobayashi sought the extension and named the involvement of investigatory organizations as a reason for it. Furthermore, he cited the amount of work required to reach a confirmation of Mt. Gox’s financial situation.
As part of its civil rehabilitation application, on Wednesday March 26th, Mt. Gox stated that it had handed in its records and documents to the Tokyo Metropolitan Police. “MtGox Co., Ltd. hereby announces that it has submitted necessary electronic records and other related documents,” stated the document. The company further stated that it is still holding out for “recovering from damages.”
Bankruptcy Protection Filing: Ongoing Investigation
On February 28th, Mt. Gox filed for bankruptcy protection in Tokyo. The once renowned bitcoin exchange claimed that it lost 750,000 bitcoins belonging to its customers and 100,000 of its own. The exchange cited a fault in the bitcoin protocol and transaction malleability for its loss. A week after having filed for bankruptcy protection, the now disgraced bitcoin exchange claimed to have found 200,000 bitcoins in an old wallet. It was only after bankruptcy protection was filed that the exchange decided to check the old wallet that it thought did not contain any bitcoins. And, lo and behold, there were bitcoins that were discovered.
Yesterday, March 27th, a new study was published for the masses revealing that Mt. Gox may have only lost about 386 bitcoin due to transaction malleability attacks.