Menu
Judge orders Mt. Gox's Karpeles to US for questioning

Judge orders Mt. Gox's Karpeles to US for questioning

Karpeles must answer questions on April 17, a Texas judge ruled

A judge in Texas has ordered Mark Karpeles, the CEO of failed Bitcoin exchange Mt. Gox, to go to the U.S. to answer questions about its bankruptcy.

Judge Stacey Jernigan summoned Karpeles to appear on April 17 at the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, according to a lawyer for the creditors of Mt. Gox.

The court had granted the exchange temporary protection from creditors, but it must prove that it deserves full protection.

In March, Mt. Gox customers Gregory Greene and Joseph Lack asked the judge to order Karpeles to go to the U.S. for a deposition to explain why it went bankrupt and what had happened to the bitcoins the exchange reported were missing.

The pair are plaintiffs in an Illinois class-action lawsuit accusing Japan-based Mt. Gox of fraud.

Blaming software errors that may have been exploited by hackers, the exchange had reported some US$474 million in bitcoins had gone missing when it filed for bankruptcy protection in Tokyo in February with liabilities of ¥6.5 billion ($63.6 million).

Through Mt. Gox's lawyers, Karpeles has indicated that he is willing to be questioned in Taiwan, but the judge noted that the Mt. Gox head had filed for bankruptcy protection in Texas.

"If he avails himself of this court, my God, he is going to get himself over here," Jernigan was quoted as saying by Reuters during the two-hour hearing Tuesday.

"To have Mr. Karpeles come here and answer basic questions about why he should get bankruptcy protection is a tremendous victory for consumers and creditors of Mt. Gox," said Steven Woodrow, a lawyer for the plaintiffs, by phone.

"If he complies with the order, that's great. If he doesn't, he'll have to throw himself on the mercy of the court."

If Karpeles fails to appear, he could face a range of consequences including the court admonishing him or throwing out his case, Woodrow said.

A U.S. lawyer for Mt. Gox did not immediately respond to a request for comment.

The exchange's lawyers tried to persuade the judge that Karpeles should not have to be questioned in the U.S., according to Woodrow. The judge did not welcome their suggestion that Karpeles could be replaced as a "foreign representative" in the case, according to the Reuters report.

The U.S. legal proceeding is taking place while a bankruptcy examiner appointed by the Tokyo District Court continues to probe Mt. Gox, once the world's largest Bitcoin exchange, as part of its Japanese motion for a civil rehabilitation.

Mt. Gox hopes to rebuild itself to "repay debts to creditors," according to a statement on its website. The deadline for examiner's report has been postponed to May 9, after which the Tokyo court will decide whether Mt. Gox should be rehabilitated or liquidated.

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Internet-based applications and servicesMt. Goxinternet

Featured

Slideshows

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

Revealed at a glitzy bash in Sydney at the Ivy Penthouse, the first StorageCraft Partner Awards locally saw the vendor honour its top-performing partners with ASI Solutions, SMBiT Pro, Webroot, ACA Pacific and Soft Solutions New Zealand taking home the top awards. Photos by Maria Stefina.

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards
Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

​Synnex and Lenovo hosted 18 resellers for an action-packed weekend adventure in RotoVegas, taking in white water rafting on the Kaituna River, as well as quad biking and dinner at Stratosfare​, overlooking Lake Rotorua at the top of Mount Ngongotaha​. Photos by Synnex.

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip
Show Comments