Bitcoin Exchange Files For Bankruptcy Amid US Investor Suit

Law360, New York (February 28, 2014, 2:34 PM EST) -- After a week of public speculation over its solvency, Japan-based bitcoin exchange Mt. Gox filed for bankruptcy in Tokyo court Friday, while U.S. investors sued it over an alleged “massive scheme” to defraud customers and hide the fact that their bitcoins had been stolen.

Mt. Gox CEO Mark Karpeles appeared before Japanese TV news cameras on Friday to announce the bankruptcy and to confirm earlier reports that a weakness in the exchange's systems had caused a massive loss of the virtual currency involving 750,000 user bitcoins...
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