US class-action suit against Mark Karpeles to move forward
The man at the center of the Mt. Gox fiasco won’t avoid answering for his actions in court
The Mt. Gox cryptocurrency exchange debacle is never going to die. It probably shouldn’t, as it serves as a reminder of how one man’s greed can impact the lives of so many. However, the exchange’s former CEO, Mark Karpeles, has never appeared to be overcome with guilt for his actions related to the exchange’s failures and is going to have to answer to investors in a US court.
When Mt. Gox went under in 2014, over $400 million in Bitcoin suddenly vanished. Karpeles has repeatedly said that the loss was the result of a cyberattack on the exchange, but many in the crypto community have often felt that Karpeles had a hand in whatever had happened to the funds. At the very least, as the man steering the ship, he was responsible for everything that transpired under his guidance.
US investors subsequently tried to sue Karpeles, who has repeatedly refused to respond to the lawsuit. He has argued that the US has no jurisdiction since Mt. Gox was located in Japan and because he is a French citizen.
A judge disagrees. Judge Robert Kelly asserts that, because the exchange allowed US customers to use the platform, it is intrinsically tied to the country. As such, Karpeles is tied to the US, as well. As a result, the man who set the crypto industry back a decade is going to have to respond to investors in court and could be held financially and judicially liable for the exchange’s failure.