Mark Karpeles gets a month to justify his motion to dismiss US case brought by ex-MtGox clients

Maria Nikolova

Judge gives MtGox founder until September 25, 2018, to file a brief in support of motion to dismiss lawsuit brought by former clients of the ill-fated Bitcoin exchange.

Shortly after Mark Karpeles, the founder of notorious MtGox, pushed to nix a US lawsuit brought against him by clients of the now-defunct Bitcoin exchange, a hearing was held at the Illinois Northern District Court. Following the hearing, the Honorable Gary Feinerman set the deadlines for the next steps in the case.

Mark Karpeles is given until September 25, 2018, that is, nearly a month, to substantiate his motion to dismiss the case against him. He will have to file a brief in support of his motion. The plaintiffs in this case have until October 16, 2018, to respond to Karpeles.

The action was brought by Gregory Greene and Anthony Motto who have sought to hold Mizuho Bank, Ltd. and Mark Karpeles liable for financial losses associated with the collapse of Mt. Gox. According to the plaintiffs, the investors who wired money into Mt. Gox’s account at Mizuho Bank after June 21, 2013, walked into a trap: their money could go into Mt. Gox’s account at Mizuho, but it could never leave.

Bitcoin investors were informed on June 21, 2013, of a “temporary hiatus” in the USD withdrawals from Mt. Gox and then told on July 4th that withdrawals had resumed.

Mt. Gox’s customers kept trading on the Exchange and relied on Mt. Gox’s promise that it would hold funds on behalf of its customers. When thousands of individuals submitted requests to withdraw their fiat currencies from Mt. Gox’s account at Mizuho, Mt. Gox was able to offer a only a handful of investors relief, though only after extended delay and payment of an increased fee. The majority of them, however, were left high and dry.

On February 7, 2014, Mt. Gox announced a “temporary suspension”. Two and half weeks later, the Exchange collapsed.

On Friday, August 24, 2018, Mr Karpeles filed a Motion to dismiss the case with the Court. In the document, he contested that the Illinois Northern District Court has personal jurisdiction over him in these proceedings.

The defendant noted that he is a citizen of France living in Japan, and that he does not have the necessary “minimum contacts” with this forum. Mr Karpeles also said that he has not “purposefully directed his activities at the forum state or purposefully availed himself of the privilege of conducting business in that state” nor does the “alleged injury arise out of the defendant’s forum-related activities.”

Although the plaintiffs assert the legal conclusion that “through Tibanne KK and the Mt. Gox Exchange, Karpeles conducted business throughout this District, the State of Illinois, and the United States”, they do not allege any personal activities of Karpeles, such as conducting his own business, in any of this District, the State of Illinois and the United States, or any specific activities of Karpeles, the defendant stated.

Read this next

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

<