Japanese Creditors Are Also Suing Former Bitcoin Exchange Mt. Gox and Mark Karpeles

bitcoin exchange lawsuitAdding to the long list of suits against downed Bitcoin exchange Mt. Gox, all of which have to wait for Japanese court action to finish in 2015, three Japanese creditors of Mt. Gox have filed a lawsuit against their former Bitcoin exchange. According to the Japan Times, The three creditors filed lawsuit in Tokyo District Court recently, demanding that Mark Karpeles pay 23.5 million Yen in damages. The suit claimed that Karpeles was "aware of the possibility of illicit withdrawals (of bitcoins) due to fragility of the firm's (computer) system."

The suit further claims that "the firm committed a grave act of negligence by failing to take necessary measures, which led to the loss of clients' bitcoins and a failure of the company."

Also read: Japanese Lender Mizuho Caught in Mt. Gox Scandal

Other  Legal Action Facing Former Bitcoin Exchange Mt. Gox

Earlier this month, the Ontario Superior Court of Justice partially certified a Canadian class action suit against Mt. Gox. The class-action certification of the case cements the cross-border Canadian-American settlement plan for the troubled Bitcoin exchange led by Jed McCaleb and Gonzague Gay-Bouchery. However, all of these overseas plans are conditional on the Japanese court's appointed Mt. Gox rehabilitation proceedings trustee, Nobuaki Kobayashi and whether or not he will approve the plan in Japanese court. Kobayashi has many different law suits in different countries to consider when parcelling out what remains of Mt. Gox. Additionally, there are ongoing criminal investigations into both Mark Karpeles and the alleged hacking of hundreds of thousands of bitcoins from the exchange. The claims themselves will not be investigated until later in 2015. For now, those with money stuck in Mt. Gox have until the end of November to file a claim with Mt. Gox. The provided information must match the provided identification verification information initially given to Mt. Gox. As the investigation continues, hopefully the world's authorities and Bitcoin security experts can make heads or tails of what happened to "all the coin" at Mt. Gox. Undoubtedly, the investigation into the fiat side of Mt. Gox's operations is already turning up skeletons. Mizuho Bank, Mt. Gox's former banking partner, is now being investigated as a former partner-in-crime.

What do you think of the ongoing Mt. Gox fiasco? Comment below!

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Last modified (UTC): October 23, 2014 7:02 AM

About the author

Caleb Chen

Caleb is a graduate of the University of Virginia where he studied Economics, East Asian Studies, and Mathematics. He is currently pursuing his MSc in Digital Currency at the University of Nicosia.