Still no update from Japanese public prosecutor regarding Mark Karpeles’ documents request

Maria Nikolova

The Illinois Northern District Court has sought the co-operation of the Japanese prosecution in a lawsuit brought by a customer of ill-famed Bitcoin exchange MtGox.

There has been little development in the lawsuit brought by Gregory Greene – a former customer of MtGox, against Mark Karpeles.

Let’s recall that the Illinois Northern District Court has instructed Karpeles to produce certain documents about the operations of the ill-famed Bitcoin exchange but he has refused on the grounds that he needs the permission of the Japanese prosecutor. In response, the Illinois Court has addressed the Japanese public prosecutor and asked for co-operation on the matter.

Earlier this week, the parties in the case filed a status report, which shows how little has changed with regard to discovery. To date, counsel for Karpeles has been informed that the order has been provided the Japanese public prosecutor, but has no information that the Japanese public prosecutor has issued any kind of response regarding the Illinois Court’s order.

As a result, Karpeles has not produced any documents implicated by the Illinois Court’s order.

Gregory Greene seeks to hold Karpeles accountable for conduct that led to the loss of more than $400 million from US users of the MtGox bitcoin exchange on theories of negligence, conversion, and fraud. The plaintiff alleges that, as the CEO of MtGox, Karpeles controlled all aspects of the exchange: he was responsible for the code underlying the exchange, knew of bugs and other security issues affecting the exchange, and controlled what information was disclosed to Mt. Gox’s customers.

Greene requests that Karpeles produces information all of which falls under the following categories:

  • Documents sufficient to identify witnesses relating to Karpeles’s operation of the Mt. Gox exchange;
  • Documents relating to Class members’ interactions with the exchange, along with their bitcoin and fiat currency holdings;
  • Documents relating to Karpeles’s ability to access and/or control Mt. Gox’s systems or user accounts, including his use of “bots” on the exchange; and
  • Documents relating to unauthorized exchange activity, whether resulting from “bugs” or “hacks”.

Each of these topics bears on the manner in which Karpeles, as the acting MtGox CEO from 2011 until 2014, operated the exchange and interacted with actual and potential customers of the Exchange.

Read this next

Digital Assets

Midas launches investment strategies for the ‘crypto winter’

Midas.Investments has released three new investment strategies on its custodial CeDeFi platform, creating new opportunities during the ‘crypto winter’.   The platform merges diverse approaches to digital asset management into single-click products to let investors gain steady profits in any market conditions — including the ongoing bear market. a custodial CeDeFi platform, CeDeFi: Unlocking the […]

Digital Assets

Bitcoin.com Wallet adds several ERC-20 tokens

The product expansion includes representatives of the DeFi world, the Metaverse, and the largest stablecoins.

Market News

Savvy Investors to Profit Whether the Stock Market Rebounds or Not

Equities have gone up enormously since the low. SP500 has gained 13.88% since June 17. In August, the indices drifted sideways. On Wall Street, veteran investors expect a move in either direction.

Industry News

Wall Street-backed MEMX obtains SEC approval for options trading platform

The company has raised more than $135 million in funding from 18 stock trading and investing heavyweights, including BlackRock, Citadel Securities, and Morgan Stanley.

Industry News

Amundi US launches ESG strategy that seeks to outperform S&P 500

Amundi’s Responsible investing team includes more than 45 specialists, and its ESG analysis covers more than 13,500 issuers across debt and equity.

Industry News

Verto launches embedded FX payments solution

The Verto API automates currency conversions, tracks payments and exchange rates in real-time, and is being launched in the follow-up of a $10 million in Series A funding last year.

Industry News

SEC awards over $16m to whistleblowers after another successful enforcement action

The program is 10 years-old and has arguably played a critical role in the Division of Enforcement’s ability to effectively detect wrongdoing, protect investors and the marketplace, and bring violators to justice.

Digital Assets

Ripple submits most succint explanation of Hinman issue in XRP lawsuit

It might be useful to get up to date as this could be the end of the road for the SEC.

Retail FX

TradingView integrates first Brazilian broker, Órama Investimentos

Órama offers all kinds of investment products, from fixed income to crypto-related funds.

<