on Friday’s bankruptcy protection announcement.

Many people assume MtGox have filed for bankruptcy. They have done the opposite, they filed for bankruptcy protection.

They are applying for Civil Rehabilitation, this is a process whereby Karpeles proposes to keep himself in charge of the company, along with its records and customer funds, and keep the company running. It would also protect the company from lawsuits seeking reimbursement of funds.

To have Karpeles remain in charge of customer deposits and plan the process of any returned funds is a very frightening prospect. Offhand I can think of approximately 7 billion other people in the world who I would prefer to be doing it.

In my view, this process is a sham as it’s hard to imagine how the company could keep on running. I see it as another delaying tactic. Any plan he comes up with would require a majority vote from creditors, which is unlikely to happen. It is possible to file for a motion to discontinue the civil rehabilitation which is what we are seeking to do.

I would like to see Karpeles removed from any further control of the company and customer deposits and for the company to enter formal bankruptcy, meaning a court-appointed professional would take over and redistribute any possible funds to its creditors.

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