Former MtGox clients ask for more time to effect service on Mark Karpeles

Maria Nikolova

Service has not yet been effected on Karpeles, and Japan’s Ministry of Foreign Affairs will not provide updates on their progress.

There are a number of cases in the United States targeting MtGox’s head Mark Karpeles and Mizuho Bank. The progress of these cases, however, has been hampered by formal difficulties, including the clumsy procedure for accomplishing service on Karpeles.

The plaintiffs in one of these cases have sought extra time to effect service on Karpeles. On Friday, January 4, 2019, the plaintiffs have asked the California Central District Court to extend the deadline for serving Karpeles by three months.

The plaintiff – Joseph Lack, explains 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.

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