The court of Illinois, despite the already open case in Japan, rejected the petition of lawyers of the former CEO of the bankrupt bitcoin exchange Mt. Gox Mark Carpeles on the suspension of production against him in the United States. This writes FinanceFeeds .
The relevant petition by Karpeles filed on Monday, February 25, noting that the civilian rehabilitation process in Japan was ongoing at Mt. Gox will lead to the fact that the plaintiffs in the person of Gregory Green and Anthony Motto are likely to fully receive the compensation due to them.
In addition, Karpeles’s lawyers insisted that in this case, a class action lawsuit is not the most correct way to resolve disputes.
As for the two mentioned plaintiffs, they are seeking recognition of the personal responsibility of the French entrepreneur for the loss of their investments in Mt. Gox, noting that they could not get a refund as a result of the exchange bankruptcy process.
Mark Carpeles, however, believes that a significant increase in the price of Bitcoin after the collapse of Mt. Gox gives reason to say that the plaintiffs will receive their compensation after the trial, which is held in parallel with this in Japan. For this reason, and in order to avoid unnecessary legal costs, the case in the USA, Karpeles insisted, should be suspended.
Nevertheless, the judge of the Northern District Court of Illinois Gary Feinerman on Thursday, February 28, the petition Carpeles rejected. At the same time, the court decided to extend the deadline for responding to requests for documents already submitted until May 15, 2019.
Once the largest Bitcoin exchange Mt. Gox crashed in early 2014. This happened after the information appeared about its alleged hacking and theft of 800,000 BTC ($ 480 million at that time). In December last year, Karpeles, during his closing speech at a Tokyo court, called himself innocent of the events that caused the millions of client losses and the company's collapse.
It should be noted that Karpeles is not directly blamed for multimillion-dollar losses of the stock exchange. However, prosecutors claim that between September and December 2013, he transferred to his account 340 million yen ($ 3 million) owned by users. According to the authorities, Karpeles used these funds to invest in a business related to software development.
Protection Karpeles claims that the transfer of funds was carried out without violations, in the framework of the business model Mt. Gox, however, if he cannot prove Karpeles innocence, he faces ten years in prison .
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