The exchange originally filed for bankruptcy protection back in late February but the newspaper said on Wednesday, citing people familiar with the situation, that it has asked a Tokyo court to allow it to be liquidated.
Liquidated would mean the company is brought to an end, and the assets and property of the company are redistributed. The move could also mean creditors are set to recoup less of their investments. No one from Mt. Gox could be reached for comment Wednesday.
The Tokyo-based exchange - which once claimed it handled around 80 percent of all global dollar trades for bitcoin - was an online marketplace where people can buy or sell bitcoins using different currencies. Rather than filing for bankruptcy in late February, the company opted for a Chapter 11-style civil rehabilitation that gives the company time to reorganize its affairs with lawyers treating it as an ongoing concern.
At the time, it detailed outstanding debts of about 6.5 billion Japanese yen ($63.6 million), 850,000 lost bitcoins and 127,000 empty-handed customers, but added that it was looking to continue doing business so it could start repaying its creditors.
Mt.Gox blamed the bitcoins' disappearance on a bug in the cryptocurrency's framework called "transaction malleability." This means that while users were receiving incomplete transaction messages when using the exchange, in reality bitcoins may have been illicitly moved by hackers out of their accounts.
Of the 850,000 lost bitcoins, 200,000 have been recovered since the original bankruptcy filing. However, that still leaves $325 million of the cryptocurrency, valued at today's market prices, unaccounted for.
It's now expected that a trustee will take over the company's assets from embattled CEO Mark Karpeles. Reports earlier in the week said that Karpeles had refused to travel to the U.S. this week to answer questions regarding its U.S. bankruptcy case with furious foreign investors hoping to recoup some of their losses.
William Quigley, the managing director at California-based Clearstone Venture Partners is part of a consortium that has expressed an interest in buying Mt. Gox. He told CNBC on Monday that he would look to buy the exchange for the "symbolic amount" of one bitcon and would fix the security issues and "rehabilitate it."
"Mt. Gox is more than just the assets that it has. Mt. Gox at one point, not that long ago, was the largest bitcoin exchange in the world doing somewhere close to $500 million worth of bitcoin transactions each month. And the company still has a very important role, we believe, in the continuation of bitcoin," he said.
"We need to ensure that there is adequate security and there really wasn't I would say in the bitcoin exchange in Mt. Gox."