MtGox Bitcoin Bankruptcy Comes to Ontario

Andrew Ottaway, B.A. (Hons.), LL.B.Civil Litigation, Commercial Law, Commercial Litigation, Enforcement of Foreign Judgments, Information Technology0 Comments

MtGox was reportedly the largest exchange for the digital current “bitcoin“.  MtGox was forced to suspend trading in bitcoin after a massive digital theft or disappearance of the bitcoin it held.  As a result, MtGox declared bankruptcy in Japan.

Canadian customers of MtGox brought a class action for the value of their bitcoins.  MtGox’s bankruptcy trustee applied for recognition of the Japanese bankruptcy proceedings in Canada as the “foreign main proceeding” under the Canada Bankruptcy and Insolvency Act.  Recognition of the Japanese bankruptcy proceedings as foreign main proceeding would have the effect of automatically “staying” (blocking) the Ontario class action.

The Court found that the Japanese bankruptcy proceeding was the foreign main proceeding because, among other things, MtGox had no offices, subsidiaries or assets in Canada, it was organized under Japanese law, its headquarters were in Japan, and its main bank accounts were in Japan.  The Court stayed the Ontario class action against MtGox.

If you require advice on litigating foreign or cross-border disputes in Ontario, please contact us for an initial consultation.


Brief informational summaries about insurance litigation, commercial litigation and family law litigation matters in the courts of Ontario and Canada are periodically published on our website. Please note that our website content is for informational purposes only, and should not be construed or relied upon to provide legal advice. If you require legal advice, please request an initial consultation with Gilbertson Davis LLP using the Request Consultation Form on this webpage or by contacting our Intake Coordinator on (416) 979-2020, ext. 223 (both subject to the Terms of Use described on our Contact page).
Comments & Opinions by Gilbertson Davis LLP lawyers and staff on its Blog, or in media interviews, appearances or publications, or in professional publications, are personal to them, and do not necessarily represent the opinions of the Firm or anyone at the Firm other than the individual expressing those comments or opinions.

About the Author

Andrew Ottaway, B.A. (Hons.), LL.B.

Leave a Reply

Your email address will not be published. Required fields are marked *