Mt. Gox Bitcoin Exchange’s Mark Karpeles Urges US Judge to Drop Fraudulent Lawsuit

Mark Karpeles Urged a US Judge to Dismiss a Fraud Lawsuit

Mt. Gox owner, Mark Karpeles, urged a U.S. federal judge to dismiss a fraud lawsuit. The lawsuit has be presented by former customers for the Mt. Gox exchange. They insist that the U.S. court has no personal jurisdiction over him in Japan.

However, Mark Karpeles’ representatives explained to the U.S. District Court Judge Gary Feinerman that he does not have sufficient ties in Illinois. Moreover, he did not conduct any business in the state. That means that there is no justification for a lawsuit from former customers in the state.

Mark Karpeles is being accused due to Mt. Gox’s bankruptcy that took place back in 2014. At that moment, Mt. Gox lost over one million bitcoins that were worth $400 million at that moment.

On August 28, attorneys for Karpeles Filed a motion with the intention to dismiss the case saying that the did not have contacts of established ties in that state.

The motion to dismiss the claims against him read as follows:

“Mr. Karpeles expressly assets that this Court lacks personal jurisdiction over him and preserve this objection and argument for all purposes… Because this Court lacks personal jurisdiction over Mr. Karpeles, this proceeding against him must be dismissed with no further actions taken, including but not limited to the entry of any default.”

At the same time, Mt. Gox trustee Nobuaki Kobayashi – the man that oversees the customer reimbursement process, decided to launch an online claim filing system last week. Currently the estate holds 137,891 bitcoins, close to $1 billion dollars at current prices.

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