Mt Gox CEO Karpales Ordered to Attend US Bankruptcy Hearings

Mt Gox CEO Karpales Ordered to Attend US Bankruptcy Hearings

image

Karpales argues that he should be able to send an intermediary, but Judge Stacey Jernigan tells him no.

Mt Gox, the Bitcoin exchange that imploded spectacularly a short while ago, filed for US bankruptcy protection, but up until now CEO Mark Karpales has argued he doesn't need to attend the bankruptcy hearings in person. Karpales claims he's worried he'll be hit with additional lawsuits as soon as he sets foot on US soil, but Bankruptcy Judge Stacey Jernigan has told Karpales in no uncertain terms that he will attend the April 17th deposition, to answer questions.

"If he avails himself of this court, my God, he is going to get himself over here," says Judge Jernigan. Karpales was hoping to travel only as far as Taipei, and send a representative to answer questions in his place. Karpales has some cause to be worried about lawsuits; there's already a Canadian class action suit demanding $500 million from two named defendants, including Karpales, in addition to Mt Gox itself, its bank and other affiliated companies.

An Illinois class action is also under way - Greene v. Mt. Gox Inc., 14-cv-01437 - claiming that "rather than safeguard users' property, Mt. Gox - aided and abetted by Mizuho and John Doe Defendants - devised a scheme whereby they stole the money and Bitcoins of its users." The attorneys in that class action have offered to pay Karpales' travel expenses, if Karpales will agree to attend in person.

"I think it's a great decision. We're very happy with it," says Greene attorney Steven Woodrow. "You shouldn't be allowed to just hide behind a website or to hide out in Japan."

Judge Jernigan refused to let the Greene attorneys ask questions pertaining to its class action, limiting the inquiry to Mt Gox's eligibility for US bankruptcy protection. Karpales was supposed to be in court this month, to determine whether or not Mt Gox is eligible. That date has been re-set to May 20th.

Bitstamp currently values Bitcoin at $433.35 per. In November and December last year it traded at over $1,000 per, but this was a brief spike; even as early as November 1st 2013, Bitcoin's value was only $202.15 per.

Source: Ars Technica

Permalink

It's never a good sign when the CEO needs to hide in other countries to dodge lawsuits.

This whole thing is surprisingly similar to the dot com bubble. They are essentially selling stock in a company who's only purpose is to exist to have it's stock bought and sold.

So its down to 433.35 now? has the bubble been leaking or something?

BigTuk:
It's never a good sign when the CEO needs to hide in other countries to dodge lawsuits.

I can just see it now. There he is, heading into other countries where...

"Hello, I would like to take refuge in your country for a while."
"Ah, very good! Welcome! We always take the business of refugees seriously. You have money, yes?"
"I can pay you in Bitcoins, so-"
GET OUT OF MY COUNTRY, YOU MONGREL PISS-DOG!! WE DON'T WANT YOUR KIND HERE!!!"

Heh heh heh heh heh.... Gold...

 

Reply to Thread

Log in or Register to Comment
Have an account? Login below:
With Facebook:Login With Facebook
or
Username:  
Password:  
  
Not registered? To sign up for an account with The Escapist:
Register With Facebook
Register With Facebook
or
Register for a free account here