Bitcoins.com auction suspended following a judicial restraining order

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Bitcoins.com domain affiliated with Mt. Gox was pulled off from the auction after a US court ordered the auction house to hold on the sale for a period of 14 days beginning Tuesday.

The lawsuit CoinLab filed against the company for breach of the contract terms the companies have entered into has now come in the way of the sale which is expected to take place on July 24. Heritage Auctions said that the auction of Bitcoin.com is withdrawn and the bids accepted until now are cancelled and no new bids are accepted.

CoinLab and the Japanese Bitcoin exchanges had a partnership which says that CoinLab was to take charge of the operations of Mt. Gox’s US and Canada operations; however, the company not only let CoinLab take over but also continued carrying out operations by itself.

The lawsuit was filed last year in May and following the filing for bankruptcy in February 2014, Mt. Gox chose to sell the domain to settle the due amount to its creditors.

The US court has issued a restraining order stating that both Mt. Gox or its parent company Tibanne are forbidden from selling or transferring any of its assets and the court has also ordered the companies to preserve the assets and account for its assets.

It was rumoured in May 2014 that Tibanne CEO Mark Karpeles is looking for a company who will buy the domain for $1 million as it is bankrupt. Trouble started for Mt. Gox which was once a busy Bitcoin trading exchange, when there was a transactiona malleability problem which affected other websites in which it lost almost 744,000 bitcoins worth $463 million.

Karpeles said that the company offered it on an auction only after the bankruptcy court approved it and that he, along with Tibanne will try to recover funds and bitcoins. He has terminated his attorneys and is representing Tibanne in the court.