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Japanese Authorities Deliver Fatal Blow To Mt. Gox Recovery Efforts

The fiasco of the once dominant Bitcoin Exchange Mt. Gox continues to make the headlines. Virtual currencies like Bitcoin are becoming an integral part of the gambling world as they offer alternative legal methods to gamble online. The key to the long term success of Bitcoin is stability and less negative publicity.

The Japanese authorities have long since last patience with the Tokyo based Mt. Gox Bitcoin exchange and have already proposed legislation to prevent another collapse like that of MT Gox. Today saw another move by Japanese authorities which may well be the final nail in Mt. Gox coffin. In a statement from a court appointed administrator, Mt. Gox has been prohibited from beginning any civil rehabilitation procedures which in essence will force them to file for liquidation. This news is not good for creditors as their chances to regain some of their lost cash will be much harder when Mt. Gox goes into what seems like inevitable liquidation.

In a statement the court attorney Nobuaki Kobayashi said,” The Tokyo District Court recognized that it would be difficult for the company to carry out the civil rehabilitation proceedings and dismissed the application for the commencement of the civil rehabilitation proceedings.”

There was some optimism that Mt. Gox may attempt a comeback as they did mange to “find” or recover some 200,000 of the 850,000 Bitcoins they lost in February. A statement from a Mt. Gox representative summed up the glum mood,” There is still a chance that Mt. Gox will consider a buyout offer from investors. But “at this time, there are no prospects for the restart of the business.”

Author: Victor

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