[Translation from the Japanese] February 28, 2014 To anyone concerned Mar !

arpeles "epresentati#e $irector Mt%o& 'o(, )td( *hibuya 2+11+, *hibuya+ u, To yo

-../0.'1M1.T "1%-"$2.% -. -33)2'-T2/. F/" '/MM1.'1M1.T /F - 3"/'1$0"1 /F '242) "15-62)2T-T2/.

Mt%o& 'o(, )td( made today an application for commencement of a procedure of ci#il rehabilitation 7minji saisei8 at the To yo $istrict 'ourt( This application 9as accepted on the same day( Further, Mt%o& 'o(, )td is under se#eral orders issued by the 'ourt : a preser#ati#e order prohibitin; it from payin; its debts, transferrin; its assets or establishin; security o#er its assets, an order establishin; a comprehensi#e prohibition of forced attachment of its assets by its creditors and a super#isory order orderin; super#ision by a super#isory committee( 2n conse<uence, Mt%o& hereby informs you as follo9s( =e first e&press our most sincere re;rets and apolo;ies for this situation and for causin; so much incon#enience to all our users and other interested parties( =e 9ill fully respect the abo#e orders and maintain our assets 9ith all the necessary care( 1( 718 Financial situation, reasons and timeline leadin; to this application -s of no9, the liabilities of Mt%o& 'o(, )td e&ceed its assets and its financial situation is as follo9s: Total amount of assets Total amount of current liabilities 728 >,841,8??,1?> ?,,01,11@,>A1

The increase of current liabilities may be lin ed to a loss of bitcoins and customer funds(

These are no9 in#esti;ated by an e&pert and all efforts are made to disco#er the truth( This application 9as prompted by the follo9in; troubles: -t the start of February 2014, ille;al access throu;h the abuse of a bu; in the bitcoin system resulted in an increase in incomplete bitcoin transfer transactions and 9e disco#ered that there 9as a possibility that bitcoins had been illicitly mo#ed throu;h the abuse of this bu;( -s a result of our internal in#esti;ation, 9e found that a lar;e amount of bitcoins had disappeared( -lthou;h the complete e&tent is not yet no9n, 9e found that appro&imately A,0,000 bitcoins deposited by users and appro&imately 100,000 bitcoins belon;in; to us had disappeared( =e belie#e that there is a hi;h probability that these bitcoins 9ere stolen as a result of an abuse of this bu; and 9e ha#e as ed an e&pert to loo at the possibility of a criminal complaint and underta e proper procedures( /n the same day 724th8, 9e found out lar;e discrepancies bet9een the amount of cash held in financial institutions and the amount deposited from our users( The amounts are still under in#esti;ation and may #ary but they appro&imate J3B 2(8 billion( =e are in#esti;atin; the causes of these problems( *ince there are probably a #ariety of causes includin; hac in; by third parties, 9e need to in#esti;ate a hu;e amount of transaction reports in order to establish the truth( -s of this date, 9e cannot confirm the e&act amount of missin; deposit funds and the total amount of bitcoins 9hich disappeared( /nce 9e disco#ered that bitcoins had disappeared and the discrepancies bet9een cash funds and deposit balances, 9e Cud;ed that it 9ould be difficult to continue our acti#ities normally and 9e therefore closed our site at noon on the 2, th 7Japan time8( 7>8 "e;ardin; the filin; of a complaint or dama;es report, an e&pert has been mandated and in#esti;ations ha#e started( =e 9ill ma e all efforts to ensure that crimes are punished and dama;es reco#ered( Further 9e 9ill fully cooperate 9ith in<uiries from authorities and in#esti;ations related to this matter, in Japan or o#erseas( 2n order to increase repayments to our creditors, it is necessary to e&plore the possibility of ha#in; Mt%o& 'o(, )td( continue its business( This is 9hy the ci#il rehabilitation procedure has been

chosen, "ebuildin; Mt%o& 'o(, )td under the super#ision of the court in a le;ally or;aniDed procedure 9hile ;i#in; proper e&planations 9ill not be for the sole benefit of the company but for that of the 9hole bitcoin community( -ll efforts 9ill no9 be made to restore the business and reco#er dama;es to repay debts to creditors( =e hope for the understandin; and cooperation of all( 2( 718 728 7>8 /utline of the application -pplication date Jurisdiction February 28, 2014 To yo $istrict 'ourt 6a er E Mc!enDie 7%ai o uho Joint 1nterprise8 -ttorney+at+la9 -ttorney+at+la9 -ttorney+at+la9 -ttorney+at+la9 748 7,8 7?8 >( *uper#isor 2n#esti;ator 'ase no( -ttorney+at+la9 idem 2014 7sai8 12'i#il rehabilitation commencement application Jun o *uetomi Bamamoto 5ideyu i - io *hinomiya !aDumasa !a9ai .obua i !obayashi

'ounsel of applicant

Bodoyabashi E Bama;ami )e;al 3rofessional 'orporation

.a;ashima /hno E Tsunematsu

'ontact information

- call center has been established to respond to all in<uiries( The call center is planned to start on March >, 2014( -ll in<uiries to Mt%o& 'o(, )td( should be made to the follo9in; telephone number: Telephone number F81 >+4,88+>@21 =or in; hours Monday to Friday 10am to ,pm 7Japan time8

3lease refrain from contactin; the office of the super#isorGin#esti;ator(