Mt. Gox–the failed bitcoin exchange–has abandoned plans to reorganize under bankruptcy protection and has, instead, agreed on the first step toward liquidation. According to a Wall Street Journal article, the Tokyo District Court scrapped its earlier request for “rehabilitation” and Mt. Gox expects a liquidation order to be issued.
In a news release, the exchange said “The Tokyo District Court recognized it would be difficult for the company to implement civil rehabilitation proceedings. It is expected that the commencement of bankruptcy proceedings will be ordered.” According to the article, the court is expected to make its decision public sometime in the next two weeks.
The Tokyo-based exchange collapsed in February, announcing that it had lost 850,000 bitcoin, worth half a billion dollars. At the time, the company blamed hacking attacks targeting vulnerabilities in bitcoin software for the losses. The company later said it found 200,000 of the missing bitcoin.