"The Tokyo District Court recognized that it would be difficult for the company to carry out the civil rehabilitation proceedings and dismissed the application for the commencement of the civil rehabilitation proceedings," he said.
Mt. Gox filed for bankruptcy protection from creditors in Japan in late February, saying it may have lost some 850,000 bitcoins ($454 million) due to hacking into its computer system. It later said it had found 200,000 of those bitcoins.
An administrator will try to sell the company's assets and many creditors, including those who had bitcoins with the exchange, are unlikely to get any money back.
Bitcoins were created in 2009 by a mysterious figure or group known as Satoshi Nakamoto and are used for transactions across borders without third parties such as banks.