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