Former Mt.Gox CEO faces yet another lawsuit in United States

Mark Karpeles Philadelphia lawsuit

The former CEO of the now-closed down Mt.Gox Bitcoin exchange, Mark Karpeles is facing yet another lawsuit in the United States. This time the hearing is happening in Philadelphia, as the plaintiff claims one case of fraud and one case of negligence against Karpeles.

Due to the fact that Mt.Gox was largely based in Tokyo, Karpeles had requested the suit to be dismissed as he believed the local court did not have the jurisdiction to process it.

However, his request was denied by the local judge and he now could face a class-action lawsuit.

The Philadelphia resident and former Mt.Gox customer, Gregory Pearce has mentioned that upon his request to Mt.Gox to send him a physical security key nobody from the exchange had complied. This, however, is the basis of only one of his allegations.

The second stems from the speculation that Karpeles was well aware of the security issues of the Mt.Gox exchange but either failed or refused to do anything about it.

Such cases are not uncommon for Karpeles as he’s had to face numerous such allegations in Japan, as well as Canada. In Japan, he was being charged with embezzlement but was found innocent, and in Canada, the charges were similar to that of the US, negligence and fraud.

Giorgi Mikhelidze

Giorgi Mikhelidze

Georgian-born blockchain enthusiast Giorgi leverages his software development background for on point market commentary and analysis. A brief stint with Finance Makers and he's now covering crypto news for high authority websites with the tip learned from past experience, "Whenever you see people talking about the weakness of your idea, don't see it as criticism."

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