US Court certifies forthcoming deposition of Mark Karpeles in Tokyo

Maria Nikolova

The deposition of MtGox’s principal Mark Karpeles is scheduled for November 5, 2019 at the United States Embassy in Tokyo, Japan.

A lawsuit related to the collapse of Bitcoin exchange MtGox continues at the Illinois Northern District Court. The action brought by one of MtGox’s US customer – Gregory Greene, now focuses on the discovery process, and deposition taking in particular.

On September 17, 2019, the Honorable Gary Feinerman granted a motion for order certifying deposition of Mark Karpeles in Tokyo.

The Court order certifies the forthcoming deposition of Mark Karpeles on November 5, 2019 at the United States Embassy in Tokyo, Japan and appoints (i) his counsel, Rafey S. Balabanian, Benjamin S. Thomassen, and J. Aaron Lawson, (ii) Mark Karpeles’s counsel, Bevin Brennan and Albert A. Ciardi III, and (iii) Plaintiff’s retained court reporter, Lisa Barrett, to participate in said deposition. Karpeles did not contest the order.

Over the last several months, the parties in the case brought by Gregory Greene have worked to schedule Karpeles’s deposition in Japan. Due to the restrictions imposed by the treaty between the United States and Japan, all depositions taken in Japan must take place at either the US Embassy in Tokyo or the US Embassy in Osaka. The treaty does not allow for video or telephonic depositions. As a result of these and other restrictions, the Embassy deposition rooms are subject to very limited availability and must, at minimum, be booked six weeks in advance.

The plaintiffs in the case seek on behalf of a putative class to hold Mark Karpeles, Mt. Gox’s principal, liable for financial losses allegedly arising from the exchange’s collapse. The plaintiffs are bringing state law claims that sound in conversion/trespass to chattels, negligence, and consumer fraud. Their complaint alleges that Karpeles intentionally misrepresented the security and stability of the Mt. Gox exchange and that his negligent or intentional failures in designing and operating the exchange allowed the loss of the plaintiffs’ assets. On behalf of a putative class, the plaintiffs seek actual, statutory, and punitive damages, along with prejudgment interest and attorney fees.

Let’s recall that, in March 2019, the Illinois Northern District Court denied a motion to dismiss brought by Mark Karpeles. In denying Karpeles’ motion to dismiss, Judge Gary Feinerman noted that Greene’s contacts with the exchange were not random, isolated, or fortuitous, but rather the product of Mt. Gox’s virtual presence in Illinois, as some 7,056, or about 1.5%, of the addresses associated with Mt. Gox accounts came from Illinois.

The Court has found that, even if the Illinois market was “simply one among many”, a place of no particular interest to him, Karpeles purposefully availed himself of that market by operating an exchange that generated thousands of Illinois accounts and by purporting to safeguard the assets of Greene and the other Illinois users.

Read this next

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading

Technology

DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.

<