By
Godfrey Benjamin
March 9th, 2023
CoinLab announced it would support Mt. Gox’s bankruptcy filing.
CoinLab, the US company and former operational manager of Mt. Gox in the United States and Canada, has recently announced that it would support the Japanese exchange’s bankruptcy case.
As The Wall Street Journal reports, the digital currency startup located in Seattle filed court papers on Friday, June 6th and stated it will not oppose the Chapter 15 bankruptcy protection for Mt. Gox. CoinLab has previously objected exchange’s revival plan suggested by investor group Sunlot Holdings.
The move will accelerate the development of international bankruptcy process. The hearing will take place on June 17. If the case is settled, it would allow Mt. Gox to consider revival bid from Sunlot Holdings. Although it is the only known revival plan, there are other bids rumored to be proposed by Chinese currency exchange OKCoin. Moreover, CoinLab will submit its own revival plan.
Nobuaki Kobayashi, Mt. Gox’s trustee admitted that the bankrupt exchange needs to receive its protection filing’s approval in the United States until he can assert more authority in the case.
After filing for bankruptcy in March, Mt. Gox KK was granted preliminary protection from certain creditors in the United States.
The bankruptcy judge Stacey Jernigan would need to review the matter in order to decide whether to prolong the offering.
The move is the second significant development in the case following CoinLab’s decision to block the revival plan submitted by Sunlot Holdings.
In the filing, CoinLab critiqued the investor syndicate of the probable intention to overcharge its users for certain responsibilities it would execute. Still, it was not the only concern of CoinLab.
CoinLab filed a case against the Japanese exchange in May 2013 as Mt. Gox did not gave CoinLab the necessary resources to realize its obligations under the contract. In September 2013, the company was countersued by the exchange.
Neither of the cases had been settled during Mt. Gox’s bankruptcy. However, CoinLab admitted that more legal developments were anticipated in the case until Mt. Gox’s filing.
CoinLab’s announcement was made in a relatively quiet period as the case was pretty chaotic and intense for people involved. Many of the regulators, creditors and experts participating in the proceedings lost significant amount of money after the bankruptcy of the exchange.
On the 17th of June, Judge Jernigan will pursue a hearing to decide whether the Japanese exchange is officially received Chapter 15 filing protection.
The Wall Street Journal indicated that Mt. Gox representatives have to “prove a legitimate court proceeding is taking place in a foreign country” until getting protection.
