Mt. Gox received U.S. bankruptcy protection on March 10, temporarily halting legal action against the company by traders who claim the operation "was a fraud," according to Reuters.

The Japanese company, once considered the world's largest Bitcoin exchange, filed for bankruptcy in Japan last month, after it claims it may have lost 750,000 of its customers' bitcoins after being attacked by hackers.

Over 100,000 of the company's own bitcoins were also loss in the attack.

"I am sorry for the troubles I have caused all the people," Karpeles said in Japanese at a Tokyo court, according to USA Today.

The price of Bitcoin is down around 4% at $554.86.

Judge Harlin Hale in Dallas granted temporary bankruptcy protection to the company, according to Reuters.

Mt. Gox attorneys said without bankruptcy protection, the company would be "irreparably harmed" by a breach of contract case in Seattle federal court and a class action in Chicago federal court.

The plaintiff leading the lawsuit is scheduled to ask a federal judge to freeze Mt. Gox's U.S. servers and other computer equipment later on today, March 11, to set up a trust over Mr. Gox's assets.

"This case involves a massive fraud," said Steven Woodrow, an attorney leading the class action, to Hale, according to Reuters. "They claim incredibly that they will preserve assets and protect assets by entrusting the servers and other property to Mr. Karpeles. Respectfully, your honor, that is the definition of the fox guarding the henhouse."

David Parham, Mt. Gox's attorney, has denied there was any fraud, and was quoted saying he believes Karpeles and Mt. Gox are complying as best as they can with the bankruptcy proceeding.

Jay Edelson, managing partner of Edelson PC, said that approximately 600,000 people in the U.S. had bitcoins tied to Mt. Gox, which is valued at several hundred million dollars, according to USA Today.

"This is either a case of gross incompetence, a real breach of fiduciary care, or an outright fraud," Edelson said in a statement.

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