Tokio District Court: MtGox bankruptcy report

Tokyo District Court 2014 (fu) No. 3830

Bankrupt Entity: MtGox Co., Ltd.

Report

September 9, 2015

To: Tokyo District Court, Collegiate Section of 20th Civil Division

Bankrupt Entity: MtGox Co., Ltd.

Bankruptcy Trustee: Nobuaki Kobayashi, Attorney-at-law

  1. Past Events and Present Situation Concerning Bankruptcy Estate
  1. Present Situation of Bankruptcy Estate

The status of the bankruptcy estate, based on the investigation conducted up to the time of preparation of this Report, is as shown in the List of Assets and the Balance Sheet, and the balance in the account that the bankruptcy trustee has secured as of September 8, 2015 is JPY 1,242,068,375, i.e., a decrease of approximately JPY 130,000,000 from the time of the 3rd creditors’ meeting.

However, since the investigation of the status of holdings of BTC is still on-going, such List of Assets and Balance Sheet do not contain BTC held by the bankrupt entity, or claims for return of BTC (which constitute the bankruptcy claim).

  1. Past Events Concerning Bankruptcy Estate

Principal past events concerning the bankruptcy estate from the time of the 3rd creditors’ meeting up to the present are as follows:

  1. Recovery of Assets

The status of recovery of assets up to the present is as described in the List of Assets. I continue to strive for the possible collection of other assets.

  1. Status of Management of BTC

The amount of BTC managed by the bankruptcy estate as of September 7, 2015 is 202,159.34071488 BTC. Currently, I am still investigating the existence of BTC remaining in the bankrupt entity’s data, and it is planned that as soon as such BTC are found I will move them to the address which I manage, and I will keep such BTC.

  1. Filing of Bankruptcy Claims and Investigation of Claims
  1. Status of Filing of Bankruptcy Claims

The status of the bankruptcy claims filed as of the end of August 2015 is as follows: Number of bankruptcy creditors: 24,704

Total amount of the bankruptcy claims filed: JPY 2,663,398,225,570 (of which the amount of the claims filed by the three largest creditors amounted to JPY 2,533,517,211,285).

  1. Investigation of Claims

September 9, 2015 was the date set for the investigation of claims. However, as stated in 3. below, as I am still investigating whether or not the BTC and currencies disappeared and if they have, the background behind such disappearance, as well as the accurate balance of the account held by each user of the MtGox exchange, I have neither approved nor disapproved any of the bankruptcy claims yet. Therefore, I decided to extend the date for the investigation of the claims filed by the exchange-user creditors to the date of the next creditors’ meeting.

I plan to approve or disapprove the claims filed by the creditors other than the Exchange user creditors today.

  1. Investigation of Disappearance of BTC, etc.

I am conducting investigations into whether or not the BTC and currencies have disappeared in the bankrupt entity and if they have, the background for such disappearance by delegating such work to Deloitte Touche Tohmatsu LLC and ReEx Accounting Firm as well as by obtaining the assistance of the supporting company Payward .

Additionally, following a request of the Metropolitan Police Department for cooperation in the investigation, I am providing cooperation as much as possible. In connection with such police investigation, careful treatment of the information as to the investigation (including the disclosure of the addresses previously managed by the bankrupt entity) is now needed.

  1. Affiliated Company

The bankrupt entity has several affiliated companies (parent company, etc.), and has loan receivables, etc. against the following companies, etc., and, therefore, I am making efforts to collect on such loan receivables.

  1. TIBANNE Co., Ltd.

On May 15, 2015, in the process of the bankruptcy proceedings against TIBANNE Co., Ltd., which is the parent company of the bankrupt entity (Tokyo District Court 2015 (fu) No. 585), I filed bankruptcy claim (total amount of the bankruptcy claim filed is JPY 25,841,657,102).

  1. K.K. Shade 3D

While the bankrupt entity has loan receivables in the amount of JPY 338,139,321 (amount based on the settlement accounts of the bankrupt entity as of April 24, 2014) against K.K. Shade 3D, which is a subsidiary of TIBANNE Co., Ltd., after obtainment of the court approval. I entered into an agreement on September 4, 2015, with Mr. Taro Awataguchi, who is the bankruptcy trustee of TIBANNE Co., Ltd., New Horizon II Investment Limited Partnership and New Horizon Capital Co., Ltd., pursuant to which I will sell such loan receivables to New Horizon II Investment Limited Partnership for JPY 46,686,362.

  1. K.K. Bitcoin.

Cafe With respect to the proof of bankruptcy claims that I filed in the process of the bankruptcy proceedings against K.K. Bitcoin. Cafe, the case for the objection to the bankruptcy claim assessment (2015 (wa) No. 6570) is currently being heard before the Tokyo District Court and the third preparatory proceeding took place on August 10, 2015.

  1. Robert Marie Mark Karpeles Since the bankrupt entity has loan receivables in the amount of JPY 136,175,781 (amount based on the settlement accounts of the bankrupt entity as of April 24, 2014) against Robert Marie Mark Karpeles, who is the representative director of the bankrupt entity, I am considering taking necessary legal action against him.

Robert Marie Mark Karpeles was arrested on August 1, 2015 on suspicion of unauthorized creation and use of private electromagnetic records and on August 21, 2015 on suspicion of corporate embezzlement, respectively, and is currently under detention.

  1. Existence of Circumstances Requiring Temporary Restraining Order, as Stipulated in Article 177, Paragraph 1 of the Bankruptcy Act, and Officer’s Liability Assessment Order, as Stipulated in Article 178, Paragraph 1 of the Bankruptcy Act

With respect to the existence of circumstances requiring a temporary restraining order, as stipulated in Article 177, Paragraph 1 of the Bankruptcy Act, and officer’s liability assessment order, as stipulated in Article 178, Paragraph 1 of the Bankruptcy Act, an investigation is still required to take place concurrently with the investigation stated in III. above.

  1. Matters regarding Progress of Bankruptcy Proceeding
  1. Probability of Distribution, etc.

At the current time, the probability of distribution and the timing and method thereof, etc. have not yet been determined. I continue to consider whether or not I will make distributions by way of distributing BTC when bankruptcy distributions are made.

  1. Provision of Other Necessary Information on Website

Since an extremely large number of creditors exist worldwide in this case, as much as possible, I plan to disclose information, etc., necessary for creditors regarding this case on the website that I manage (https://www.mtgox.com) from time to time.

End of document

 

* This translation is prepared for reference purpose only. The Japanese version is the original and if there is any discrepancy between the Japanese original and this translation, the Japanese original supersedes and governs.