Mt. Gox Mark Karpeles May Avoid Jail Time but Class Action Lawsuits Remain
Mt. Gox CEO Mark Karpeles is not out of the woods yet. | Source: AP Photo/Shizuo Kambayashi
Mark Karpeles, the former CEO of the defunct bitcoin exchange Mt. Gox, may eventually avoid jail time following the suspended sentence he received from a Tokyo court but his legal troubles are far from over.
A Suspended Sentence May Count as a Win for Mark Karpeles but the Lawsuits are Coming
Earlier this week, Karpeles failed to have a U.S. class-action lawsuit in which he is a defendant dismissed. This was after a court in Illinois, a state where around 1.5% of Mt. Gox victims hail from, ruled that there were legal grounds to go ahead with the case.
Illinois Judge Blocks Mt Gox CEO’s Bid to Weasle out of Bitcoin Trader Lawsuit https://t.co/Nd5MWV0At8
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In the lawsuit, the plaintiffs acting on behalf of the class allege that the Mt. Gox ex-CEO misrepresented facts. Specifically, they argued that he did not give a true picture concerning the collapsed bitcoin exchange’s security and stability.
The plaintiffs also accused Karpeles of negligence which subsequently led them to lose their assets. This means that if found personally culpable, Karpeles could end up paying an undetermined amount in damages and compensation. There are also numerous lawsuits that have been filed against Mt. Gox.
He Got a Suspended Sentence Yes, » Read Full Article «