The former CEO of the now long time not operating Bitcoin exchange Mt.Gox Mark Karpeles that we covered multiple times in our blockchain news was denied his motion to stay the US lawsuit against him during the rehabilitation proceedings taking place in Japan.
The motion was denied by the Illinois Northern District Court judge Gary Feinerman after the court also ruled to extend the deadline for responses submission to May 15, 2019. Karpeles filed a motion to stay the case after it was launched by former investors and according to the documents; he claimed that the rehabilitation process in Japan will likely bring to a total recovery to the lawsuit plaintiffs Gregory Greene and Anthony Motto.
The plaintiffs wanted to hold Karpeles liable for the losses they suffered after the hack of the Mt.Gox exchange and claimed that they couldn’t get their funds back after the exchange bankrupted.
However, Karpeles said that the bull market that swiped the market could provide a full recovery and this is why he suggested that the case should be stayed in order to be able to conserve judicial resources and to avoid further expenses.
Mt.Gox exchange was hacked back in 2011 and more than 24,000 investors were affected. The exchange collapsed in late 2014 and led to the loss of nearly 850,000 bitcoin valued at $460 million at the time which today would be estimated to a stunning $3.2 billion.
Karpeles denied the claims from crypto enthusiasts Brock Pierce who claimed he could reboot the trading platform and compensate Mt.Gox’s creditors. Karpeles said Pierce is illegitimate and unable to re-launch the exchange.
Karpeles is facing jail time of ten years over the alleged embezzlement.
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