MOSCOW, April 17 (RAPSI) - Mt. Gox, formerly known as the largest cyber currency exchange service, is due to be liquidated following The Tokyo District Court’s decision to reject company’s bankruptcy protection application, Wall Street Journal reported Wednesday.

Management over the exchange’s assets was reportedly moved from Mt. Gox CEO Mark Karpelès to court-appointed administrator Nobuaki Kobayashi. Who will be trustee after bankruptcy proceedings will be officially commenced is not yet clear. Karpelès himself may be investigated for liability in the exchange’s collapse, according to Sky News.

On Febraury 28th Mt. Gox announced that 850,000 bitcoins – worth about half a billion dollars, had been lost to hackers, forcing the company to fill for bankruptcy protection from the creditors, according to the report.

Bitcoin is a decentralized virtual currency, created by computer users worldwide through a complex programming procedure nicknamed “mining”. Bitcoin’s status varies from acceptance to restriction as some governments are concerned about risks involved with Bitcoin use.