CoinLab Won’t Object to Mt. Gox Bankruptcy Protection Request in the U.S.

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By Super User Jun 9, 2014 4:46PM BST

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CoinLab Won’t Object to Mt. Gox Bankruptcy Protection Request in the U.S.

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Former Mt. Gox partner CoinLab is reportedly backing disgraced bitcoin exchange Mt. Gox’s attempts to get bankruptcy protection here in the United States, the Wall Street Journal reports.

Court documents from last Friday indicate that they won’t object to Gox’s request for bankruptcy protection, and interesting development given the company hinted earlier at being against the scenario.

Judge Stacey Jernigan of the bankruptcy court in Dallas, Texas has not yet given the former exchange’s bankruptcy case the go-ahead, something Mt. Gox trustee Nobuaki Kobayashi says would give him more control over satisfying settlements with former clients here.

In Chapter 15 bankruptcy cases, officials representing a company must make an effort to prove that legitimate proceedings are taking place in a foreign country (if applicable) before recognizing the case in the United States (Mt. Gox was based in Tokyo, Japan).

Court documents did not specify why CoinLab has decided to back the bankruptcy protection request.

Under an agreement, CoinLab would have been responsible for handling U.S. operations for Mt. Gox, but was unable to due to an alleged breach of contract on behalf of Mt. Gox (the said Mt. Gox did not provide adequate resources in order for them to carry out the partnership). The company sued the exchange for $75 million.

In late May, CoinLab objected to a plan that would see Sunlot Holdings acquiring the exchange (for one bitcoin) and reviving it. Judge Jernigan rejected the complaint.

Source Wall Street Journal

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Nuno Menezes is a Bitcoin Entrepreneur and a crypto currency’s enthusiast strongly supporting the Bitcoin Portuguese Community. He is an Anthropologist and a Writer and his current field of work is virtual currencies.Complementing his Social Sciences Master degree with a Professional background in telecommunications along some experience in Computer Science, he intends to bring knowledge and understanding about the impact of crypto currencies in society.