Mark Karpeles wants to stay lawsuit brought by US clients of MtGox

Maria Nikolova

Karpeles argues that the Illinois Northern District Court should stay the case in light of civil rehabilitation proceedings in Japan that are likely to provide full recovery to former MtGox clients.

The legal proceedings related to the collapse of ill-fated Bitcoin exchange MtGox continue in the United States. On Monday, February 25, 2019, Mark Karpeles, filed a document with the Illinois Northern District Court seeking to stay one of the cases launched by former MtGox customers in the United States.

In the document, seen by FinanceFeeds, Karpeles moves the Court to stay the case in light of civil rehabilitation proceedings in Japan that are likely to provide full recovery to the plaintiffs – Gregory Greene and Anthony Motto. In the alternative, Karpeles moves to strike the class allegations in the plaintiffs’ Fourth Amended Complaint because, according to the defendant, a class action is not the superior method to resolve this controversy.

Gregory Greene and Anthony Motto seek to hold Karpeles personally liable for any losses they sustained from their investments in bitcoin on the Mt. Gox exchange that they could not recover as claimants in Mt. Gox’s bankruptcy proceedings.

Karpeles argues that through a series of events, notably the recovery of a significant amount of lost bitcoins and the rise in the value of bitcoins, the likelihood that the plaintiffs and others will obtain a full recovery in Mt. Gox’s Japanese legal proceedings is high. Whether that will happen should be known within a matter of months, he says.

In light of the status of the Japanese proceedings, this case should be stayed in order to conserve judicial resources and to preclude unnecessary legal expenses. In the alternative, the Court should strike the class allegations, as a class action is not the superior method to adjudicate this controversy, according to Karpeles.

Let’s recall that, in January this year, the Court indicated that it will nix the defense claims made by Mark Karpeles in a case brought by former MtGox clients. In a brief notice filed on January 11, 2019, the parties in the case were directed to “proceed on the assumption that Defendant Karpeles’s motion to dismiss will be denied”.

In his motion to dismiss, Karpeles insisted that, under binding Seventh Circuit law and the evidence submitted to the Court, the Illinois Northern District Court lacks personal jurisdiction over him, and the case against him must be dismissed.

Read this next

Institutional FX

Deutsche Bank goes live with its FX pricing and trade engine in Singapore

Deutsche Bank has gone live with its electronic foreign exchange pricing and trading engine in Singapore, where demand for currency trading among institutional players is on the rise.

Retail FX

CySEC extends the suspension of Depaho license until November 19

The Cyprus Securities and Exchange Commission (CySEC) has decided to extend further the suspension of the license of the Cyprus investment company Depaho Ltd, which operates the retail FX brands GTCM, FXGM and TRADEAPP.

Retail FX

CAPEX.com introduces QuantX, a tool to build automated portfolio

Multi-licensed broker CAPEX.com has rolled out a new portfolio platform, QuantX, which uses a client’s risk tolerance assessment and other criteria to create fully customized investment portfolios.

Digital Assets

Ripple scores major win: Judge orders SEC to explain…a lot

The SEC is ordered to explain, among other things, how the Howie test applies to XRP, what is the status of Ether and Bitcoin, and the sale of XRP as investment contracts.

Retail FX

Trade CFDs on 900+ of the Biggest Companies this Earnings Season with HotForex

Traders with the internationally acclaimed multi-asset broker HotForex can trade CFDs on the stocks of over 900 companies during Earnings Season with tight spreads, flexible leverage, negative balance protection and the many other advantages that have made it an honest, open and transparent broker of choice to over 2.5 million traders around the world.  

Digital Assets

Polygon (MATIC) double spend bug yields $2 million bounty for developer

Polygon, the Layer 2 solution on top of Ethereum, has recently paid out the highest ever bug bounty in history to a whitehat developer Gerhard Wagner for pointing out a double-spend bug in the network which could have resulted in huge losses if it had been exploited.

Digital Assets

KuCoin aims to become largest social trading platform in crypto

KuCoin was founded in September 2017 and it currently provides Spot trading, Margin trading, P2P fiat trading, Futures trading, Staking, and Lending to its 8 million users in 207 countries.

Digital Assets

Apifiny’s crypto trading network adds Instant Transfers for best bid and offer

Instant transfers significantly enhance Apifiny Connect, allowing traders to more efficiently buy and sell on 25 connected markets across six continents.

Retail FX

iFOREX clients can follow two experts trading in real time

Trading Rooms’ access will be free of charge for active traders who open an account with the broker.

<