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Founder of Bitcoin Exchange Mt. Gox, Mark Karpeles disputes U.S. fraud lawsuit

“Mr. Karpeles expressly asserts that this Court lacks personal jurisdiction over him and preserves this objection and argument for all purposes…Because this Court lacks personal jurisdiction over Mr. Karpeles, this proceeding against him must be dismissed with no further actions taken, including but not limited to the entry of any default.”

“[He hasn’t] purposefully directed his activities at the forum state or purposefully availed himself of the privilege of conducting business in that state. [nor] alleged injury arise out of the defendant’s forum-related activities.”

The aforementioned accusations are in relation to Mt. Gox’s bankruptcy as a result of hacking and alleged embezzlement in 2014. At the time, Mt Gox lost approximately one million bitcoins, nearly 7 billion in current day prices. As a part of its civil rehabilitation proceedings, Mt. Gox began accepting claims from its creditors from August 23.

Founded in 2010. Mt.Gox became the world’s leading Bitcoin exchange by 2013. At that time, the firm reportedly processed over 70% of all BTC transactions worldwide. In June 2013, it started off with all the withdrawals were suspended for two weeks and In February 2014 Mt. Gox’s website went dark, the exchange service was closed, and the company ultimately filed for bankruptcy.

Nobuaki Kobayashi, Mt. Gox trustee, who is overseeing the customer reimbursement process, launched an online claim filing system last week for customers to register claims of funds lost at Mt. Gox four years ago. Earlier this month, The exchange’s creditors have outlined a revised repayments plan. A list of all accepted and rejected claims – filed before a deadline on October 22, 2018 – will be revealed by the trustee on January 24, 2019.

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