Mt. Gox is close to liquidation

Mt. Gox in now in the hands of a court-appointed administrator. The former exchange is closer to liquidation than it ever was to rehabilitation. Former CEO and founder Mark Karpels received a subpoena from the US Department of Treasury's Financial Crimes Enforcement Network and will go under investigation. 

However, Karples said he will not provide testimony on US soil. “Mr. Karples is now in the process of obtaining counsel to represent him with respect to the FinCEN Subpoena. Until such time as counsel is retained and has an opportunity to get up to speed and advise Mr. Kerples, he is not willing to travel to the U.S.” Karples lawyer stated.

Mt. Gox filed for bankruptcy earlier this year after loosing in excess of 800,000 bitcoins. Some of the damage was repaired after 200,000 bitcoins were found in an old-format digital wallet. But the rest of the missing bitcoins worth more than 300 million dollars. The official site of the former exchange went back online a few weeks ago, and even Karples believed the business could be saved and get back on track.

It's now pure S.F after the Japanese court decision. Most likely, Mt. Gox will be liquidated after the court declared rehabilitation “unrealistic”. “The Tokyo District Court recognized that in would be difficult for the company to carry out the civil rehabilitation proceedings and dismissed the application for then commencement of the civil rehabilitation proceedings,” said Nobuaki Kobayashi, the provisional administrator. Former CEO, Marl Karples is also likely to be investigated for liability in the collapse of Mt. Gox.