Mt. Gox Files For U.S. Bankruptcy Protection

Mt. Gox, once the world's largest bitcoin exchange, filed for U.S. Bankruptcy in Dallas late Sunday, a move that will temporarily put U.S. legal action on hold against the Japanese company.

The company said without U.S. bankruptcy protection it would spend substantial funds defending itself against a U.S. lawsuit seeking class action status that was filed in Chicago federal court.

Mt. Gox filed for bankruptcy in Japan in February after it said it may have lost 750,000 of its customers bitcoins.