Mizuho Bank secures dismissal of claims brought by California-based customer of MtGox

Maria Nikolova

Johnathan Carmel had advanced a claim of tortious interference against Mizuho.

Mizuho Bank has managed to secure dismissal of one of the cases brought by US customers of ill-fated Bitcoin exchange MtGox. Earlier this week, Judge John A. Kronstadt of the California Central District Court granted Mizuho’s Motion to Dismiss claims against it brought by Johnathan Carmel.

In October, the Court indicated that it was inclined to grant Mizuho’s motion. This week, the official order and the reasons behind the Court’s decision were announced.

Carmel brought a putative class action on March 27, 2018 against Mizuho Bank, Ltd. and Mark Karpeles. The plaintiff advanced claims of negligence and fraud against Karpeles, and a claim of tortious interference against Mizuho. The claims are related to the collapse of MtGox.

Jonathan Carmel held $52,493.22 and unsuccessfully attempted to withdraw his funds from the exchange. The plaintiff asserts a claim of tortious interference against Mizuho Bank, on the theory that its unilateral termination of its provision of outbound wire transfers to Mt. Gox’s U.S. customers knowingly disrupted the contracts between such customers and the exchange.

Mizuho filed a motion to dismiss in June this year. The bank contends that it is not subject to personal jurisdiction in California, and that Carmel has failed to plead the essential elements of his tortious interference claim, including that Mizuho (1) knew that he had a contract with Mt. Gox or that he was even a Mt. Gox user; (2) intentionally induced a breach of that contract; or (3) caused any loss that Carmel suffered.

In granting Mizuho’s Motion to Dismiss, the Judge said that Mizuho is not subject to general jurisdiction in California. Also, All of Mizuho’s alleged conduct occurred in Japan. Thus, all of the following matters are undisputed: (i) Mt. Gox’s account with Mizuho was opened at its Shibuya branch in Tokyo; (ii) all employees responsible for operational decisions relating to Mt. Gox, including the decisions to seek to suspend services or stop accepting international wire transfers, were located in Japan; (iii) Mizuho did not communicate with Mt. Gox customers about its banking relationship with Mt. Gox; and (iv) all relevant witnesses and documents in Mizuho’s control are located in Japan.

Finally, the Court found that the plaintiff’s arguments are insufficient to demonstrate that Mizuho expressly aimed its conduct at him in California.

In the face of the dismissal of the claims against Mizuho, Carmel will continue his efforts to serve Mark Karpeles.

The case is captioned Jonathan Carmel v. Mizuho Bank, Ltd. et al (2:18-cv-02483).

Read this next

Industry News

Robinhood posts strong numbers amid growth in funded accounts

Robinhood, one of the largest trading platforms in the US, has announced the results of the third quarter which shows some robust growth even though the company did not push ahead with any major plans related to crypto.

Inside View

MetaTrader 4 – What Is It?

MetaTrader 4 is the most widely used Forex platform among brokers. What are the platform’s primary features?

Digital Assets

BlockBank launches DeFi application with Robo Advisor

BlockBank, a large mobile banking platform, has announced the launch of its DeFi application which will combine decentralized finance with AI-powered technology to help traders and investors make better trading decisions in the crypto market.

Digital Assets

eToro announces crypto staking and underlying assets for Australians

Australian users opening cryptoasset positions on eToro can now purchase the underlying asset. Soon eToro will enable coin transfers from the eToro platform to the eToro Wallet.

Digital Assets

EQONEX announces international sales team to show off digital asset offering

“It is time to show the world the quality of the EQONEX group offering, and I am excited to welcome such a high caliber group of salespeople to the organization”.

Retail FX

Webull donates 8,000 Brooklyn Nets tickets to New Yorkers

“The entire Webull team is thrilled that our first-ever sports partnership is with the Brooklyn Nets, who are only five subway stops from our headquarters in New York.”

Digital Assets

AEX integrates with fiat and crypto custodians Banxa and Xanpool

Spot trading, flexible savings, DeFi mining, are several ways AEX Global allows users to participate in the wider crypto space.


Barchart launches Microsoft Excell add-in

“Whether looking to perform their own analysis, add other data sources, build macros or anything else leveraging the powerful features of Excel, we now provide that ability.”

Retail FX

Inceptial expands Belarussian FX broker into China and Japan

“We are fully aware of the needs, customs, aspirations and limitations of the different markets of Asia, after careful research. We look forward to sharing our success with our new Asian partners on this journey.”