| March 14
March 14 A class-action lawsuit has been filed
in Canada against Mt. Gox, the leading bitcoin exchange that
lost more than $400 million of customers' digital currency,
along with Mizuho Bank Ltd, one of Japan's largest lenders.
The lawsuit, filed Friday in the Ontario Superior Court of
Justice, comes just days after Mt. Gox, based in Tokyo, filed
for a U.S. Chapter 15 bankruptcy, which shields the company from
lawsuits in U.S. courts.
The plaintiffs are Canadian residents who allege they are
owed currency and the value of bitcoins by Mt. Gox that they
have been unable to withdraw.
The lawsuit was filed on behalf of "all persons in Canada
who paid a fee to Mt. Gox to buy, sell or otherwise trade
bitcoins" and all those who had bitcoins or currently stored
with Mt. Gox on Feb. 7.
The filing alleges that a lengthy security breach at Mt. Gox
resulted in "the pilfering of millions of dollars' worth of its'
On Feb. 25 the website was shut down and users who had
currency, including bitcoins, in Mt. Gox accounts could no
longer access those funds. Approximately 750,000 of users'
bitcoins were lost, the lawsuit states.
Mizuho Bank is named in the lawsuit because "all non-bitcoin
currency received by the Mt. Gox Defendants from its users was
held in an account or accounts" at the Japanese lending
institution, the lawsuit said.
The case is David Joyce, et al and MtGox Inc, et al, Ontario
Superior Court of Justice, CV-15-500253-00CP.
(Additional reporting by Tom Hals in Wilmington, Delaware;
Editing by Lisa Shumaker)