[Translation from the Japanese]
February 28, 2014
To anyone concerned
Mark Karpeles
Representative Director
MtGox Co., Ltd.
2-11-5 Shibuya
Shibuya-ku, Tokyo
ANNOUNCEMENT REGARDING AN APPLICATION FOR COMMENCEMENT OF A PROCEDURE OF CIVIL REHABILITATION
MtGox Co., Ltd. Made today an application for commencement of a procedure of civil rehabilitation (minji saisei) at the Tokyo District Court. This application was accepted on the same day. Further, MtGox Co., Ltd is under several orders issued by the Court:. a preservative order prohibiting it from paying its debts, transferring its assets or establishing security over its assets, an order establishing a comprehensive prohibition of forced attachment of its assets by its creditors and a supervisory order ordering supervision by a supervisory committee In Consequence, MtGox hereby informs you as FOLLOWS.
We first Express Our most sincere Regrets and Apologies for this situation and for Causing so much Inconvenience to all users and Our Other interested Parties. We Will Respect fully the Above Orders and Maintain Our assets with all the necessary care.
Financial situation, reasons and timeline leading to this application
. (1) As of now, the liabilities of MtGox Co, Ltd exceed its assets and its financial situation is as follows:
Total amount of assets 3,841,866,163
Total amount of current liabilities 6,501,119,371
.. (2) The increase of current liabilities may be linked to a loss of bitcoins and customer funds These are now investigated by an expert and all efforts are made to discover the truth This application was prompted by the following troubles:
At the start of February 2014, illegal access through the abuse of a bug in the bitcoin system Resulted in an Increase in incomplete bitcoin Transfer transactions and we Discovered That There WAS a Possibility That Bitcoins had Illicitly Been Moved through the abuse of this bug.
https://www.mtgox.com/