MtGox

Application for the Commencement of Civil Rehabilitation Procedure The bankrupt entity, a company that operated an online exchange of bitcoins (“BTC”), a so-called virtual currency, made an application for the commencement of civil rehabilitation procedure at the Tokyo District Court on February 28, 2014 (Tokyo District Court 2014 (rehabilitation) No. 12). According to the Application for Commencement of Civil Rehabilitation Procedure, the reasons for the bankrupt entity’s application included the fact that, at the time such application was made, the bankrupt entity was insolvent, and its liabilities exceeded its assets, which was resulted from the potential illicit transfer of the BTC, which were managed by the bankrupt entity, through illegal access by exploiting a bug in the basic system for BTC, and a decrease in the amount of the bankrupt entity’s cash deposit (although the reason therefor has yet to be identified). At the time the bankrupt entity made its application, it had suspended all access to its website related to the above transactions. In response to the application stated above, on February 28, 2014, the Tokyo District Court issued to the bankrupt entity, in accordance with the Civil Rehabilitation Act, a supervisory order, an investigation order, a preservation order prohibiting, among other matters, the payment of debts, and a comprehensive prohibition order. Additionally, the court appointed Attorney-at-law, Nobuaki Kobayashi, who is currently serving as the bankruptcy trustee, as supervisor and investigator.