Mt. Gox creditors want to force Karpeles to testify in the US

The plaintiffs have rejected an offer to question the Mt. Gox CEO in Taiwan amid bankruptcy proceedings

Creditors of failed Bitcoin exchange Mt. Gox are trying to force its CEO Mark Karpeles to go to the U.S. for questioning related to a fraud lawsuit.

Gregory Greene and Joseph Lack asked a U.S. judge to order Karpeles to go to the U.S. for a deposition, according to a motion filed Tuesday in U.S. Bankruptcy Court for the Northern District of Texas, Dallas division, which granted the exchange temporary protection from creditors.

Karpeles has to testify in the U.S. to protect domestic creditors because of his involvement in the management of the exchange and his peculiar knowledge of its coding and operations, according to the filing.

The pair rejected a proposal from the Karpeles side to have the embattled CEO go to Taiwan to be questioned by lawyers in person or via video link, calling it "an unjustifiable misuse of judicial resources."

The motion states that the plaintiffs have offered to pay for Karpeles' travel to the U.S.

"He is someone who has availed himself of the protection of the United States courts and he wants all the advantages of a foreign representative who's been forthright, transparent and open without being forthright, transparent or open," Steven Woodrow, a Colorado-based lawyer for the plaintiffs, said.

"Most foreign representatives, from our research, who have availed themselves of the United States courts, are more than willing to come to the United States to justify the relief that they're seeking," Woodrow added. "For some reason, Mr. Karpeles seems averse to coming to the United States. His attorneys won't tell us why."

Karpeles did not respond to an email seeking comment. A lawyer for Mt. Gox in Dallas was not immediately available for comment.

Greene and Lack are plaintiffs in an Illinois class-action lawsuit that claims that the bitcoin exchange in Japan was involved in massive fraud and the theft of bitcoins and currency worth hundreds of millions of dollars.

After filing for bankruptcy protection with the Tokyo District Court on Feb. 28, saying some 850,000 bitcoins, worth about US$474 million, had gone missing, Mt. Gox also sought bankruptcy protection in Texas, which shields it from creditor lawsuits. Mt. Gox later said it found about 200,000 bitcoins in an old-format digital wallet.

The latest motion by Greene and Lack also alludes to Bankruptcy Rule 2004, which states that the court may order the examination of any party of interest.

The Tokyo court, meanwhile, is expected to decide whether Mt. Gox can be rehabilitated or whether it should be liquidated. The exchange has said it has consulted with Tokyo police regarding the disappearance of its bitcoins.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internetInternet-based applications and servicesMt. Gox

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Tim Hornyak

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?