Mt. Gox Files For Bankruptcy In The United States

Tokyo-based Mt. Gox has filed for bankruptcy in the US, just a few weeks after filing for bankruptcy in Japan, in an effort to get Chapter 15 protection from multiple lawsuits in the US, reports Tom Hals for Reuters.

Chapter 15 bankruptcy is fairly uncommon because it is always an extension of a foreign bankruptcy proceeding, and US companies aren’t eligible to file for it. If the US Bankruptcy Court determines that the entity is primarily a foreign enterprise and that bankruptcy proceedings are already taking place in accordance with international agreements, then the courts...