Auction of Bitcoins.com Domain Name Halted By US Court
A US district court has ordered Tibanne KK to cancel the auction of Bitcoins.com after a protest from CoinLab.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/EK3WBS5FGBC4PFHWSWN5JEMHOM.png)
A restraining order issued by the US District Court of Seattle has resulted in the cancellation of the anticipated auction of the Bitcoins.com domain name.
The domain name, currently owned by Mt. Gox CEO Mark Karpeles through his company Tibanne KK was expected to be auctioned by US-based auction house Heritage Auctions on 24th July. However, bitcoin startup CoinLab – which recently agreed to support Mt. Gox’s bankruptcy plan – moved to prevent the sale.
Tibanne KK has been ordered to preserve and account for all held assets, which includes the Bitcoins.com domain name. In a statement, CoinLab lawyer Roger Townsend indicated that the company, while supportive of the bankruptcy proceedings, would not allow the sale of its assets without permission.
Townsend remarked:
CoinDesk reached out to Heritage Auctions regarding the court order, but has not received an immediate response. The auction appears to be on-schedule for its original launch date according to the Heritage auction page for the Bitcoins.com sale.
CoinLab was originally contracted to provide services to Mt. Gox customers in the US and Canada. However, this relationship ended when CoinLab sued the company for failing to provide it with the resources to carry out its mandate. Mt. Gox later countersued, and neither lawsuit has been formally resolved.
Auction bad for bankruptcy
In court documents, CoinLab argued that the domain name auction would have a significantly negative impact on Mt. Gox’s bankruptcy process – and the ability for creditors to recoup lost funds.
The district court agreed with the company, saying:
The order went on to state that it is “in the public interest” to prohibit Tibanne KK and any of its employees from taking any action that might affect control or ownership of the company’s assets.
The restraining order will expire in 14 days, after which time an extension will be considered by the court.
Image via Shutterstock
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.