Westlaw News

Former Mt Gox CEO must face lawsuit over bitcoin exchange collapse - ruling

A federal judge in Philadelphia has declined to dismiss a proposed class action accusing Mark Karpeles, former chief executive of the defunct Mt Gox bitcoin exchange, of hiding problems at the online exchange before its 2014 collapse.

Karpeles, a French citizen, argued that the Philadelphia court did not have jurisdiction over him in the lawsuit by U.S. customers of Tokyo-based Mt Gox, but District Judge Robert Kelly on Friday rejected that argument. Karpeles oversaw the Mt Gox website, which solicited the business of thousands of Pennsylvania residents, giving the court the authority to hear the case, Kelly said.

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