A United States (US) court has approved the bankruptcy proceedings for the defunct Bitcoin exchange Mt. Gox amidst a settlement with American customers, according to a report.
In April, Mt. Gox customers from the US and Canada agreed to settle a class action lawsuit after entering into a deal with Sunlot Holdings, which planned to purchase the exchange and regain its share of the lost currency.
Reuters reports Mt. Gox filed for bankruptcy protection in the US to prevent those who had filed the lawsuits from seizing its assets in the country and demanding evidence and access to the company’s executives.
The ruling allows the company to seek funds in order to repay its creditors.
The settlement agreement gives customers a 16.5 per cent stake in the exchange as well as the 200,000 Bitcoin found by Mt. Gox earlier this year and US$20 million in flat currency being held by the current Mt Gox administrator.
Mt Gox filed for bankruptcy in February shortly after ceasing operations following a series of denial of service (DoS) attacks.
The business has been under investigation by American and Japanese officials following the disappearance of currency.
Image courtesy of Shutterstock
