Ex-MtGox clients get extra time to effect service on Mark Karpeles

Former clients of now-defunct Bitcoin exchange MtGox have gotten extra time to effect service on Mark Karpeles. Judge R. Gary Klausner of the California Central District Court has granted the plaintiffs’ request for another extension. The time to file Proof of Service on defendant Mark Karpeles is extended to and through April 4, 2019.

The Order also states that no further extensions will be granted.

The plaintiff – Joseph Lack, has explained that he has initiated the process of serving Karpeles in Japan. Japan’s Ministry of Foreign Affairs has confirmed that it has received all required documents and is in the process of accomplishing service on Karpeles. As of this date, however, service has not been effected on MtGox’s head. Further, the Ministry of Foreign Affairs will not provide updates on their progress.

Joseph Lack, who brought this action, is a resident of California. He joined Mt. Gox in January 2014. Upon joining, he wired $40,000 to Mt.Gox’s Mizuho account. Mizuho accepted the transfer and collected the transaction fee. On February 24, 2014, the website of the exchange went unresponsive. Lack waited in vain for his deposit to appear in his Mt Gox account and he did not succeed in getting his money back.

Accordingly, Lack brought an action against Karpeles and Mizuho. Lack alleges that Mizuho had a duty to disclose material information to him and the other depositors. Also, the plaintiff accuses Mizuho of intentionally defrauding him by concealing that the bank was no longer accepting withdrawal requests. Furthermore, the plaintiff alleges that Mizuho caused him damage.

In August 2018, the Court denied Mizuho’s motion to dismiss the action for lack of jurisdiction.