Japanese-based bitcoin exchange Mt. Gox has had its plans to rebuild the company rejected by a Tokyo court and has been placed into administration.
The exchange had originally filed for bankruptcy protection back in late February but documents published on the company's site Wednesday showed it has been placed into administration and is expected to be ordered to commence bankruptcy proceedings.
"The Tokyo District Court recognized that it would be difficult for the company to carry out the civil rehabilitation proceedings and decided to dismiss the application...and at the same time, issued an order for provisional administration," the document, written by attorney-at-law Nobuaki Kobayashi said, who has now been appointed as the provisional administrator.
"The future outlook is that, although it is subject to the decision by the Tokyo District Court, it is expected that the commencement of bankruptcy proceedings will be ordered."