Mt. Gox crypto exchange CEO Mark Karpeles has urged a U.S. federal judge to dismiss a fraud lawsuit that was brought on by the exchange’s former customers. Karpeles urged the federal judge insisting that the U.S. court has no personal jurisdiction over him in Japan.
Mark Karpeles’ representatives told Gary Feinerman, the U.S. District Court Judge, that their defendant does not have sufficient ties in Illinois. They also stated that their defendant also did not conduct any business in the state to justify a lawsuit filed by disgruntled former customers.
The accusations made by the former customers pertain to the Mt. Gox crypto exchange’s bankruptcy after being hacked and its alleged embezzlement in 2014. The exchange had lost approximately one million Bitcoins that amounted to $400 million at that time.
Karpeles, who is a French national-based out of Japan, faced an entry of default claim against him. This happened after the judge directed the court to name the former CEO as the lead defendant in the lawsuit on August 13.
The court gave the Karpeles time until August 24 to oppose the request for entry of default, for a hearing that was scheduled for August 28, as per the CCN report. The attorneys for the CEO of Mt. Gox exchange on August 28 filed a motion to dismiss the lawsuit. They claimed that the defendant did not have the required minimum contacts of established ties in the state.
Nobuaki Kobayashi, the Mt. Gox crypto exchange trustee, launched an online claim filing system last week to enable the exchange’s former customers to register claims of funds lost at the exchange four years ago. Mt. Gox’s creditors have outlined a revised repayments plan earlier this month. The trustee, Kobayashi, intends to reveal a list of all rejected and accepted claims filed before the October 22, 2018 deadline on January 24, 2019.
The post Mt. Gox Crypto Exchange CEO Urges US Federal Judge To Dismiss Fraud Lawsuit appeared first on OWLT Market.
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