Judge urges Mark Karpeles to face fraud lawsuit
The lawsuit alleges that Karpeles falsely represented the security of user funds on the exchange
As ruled by United States District Judge Gary Feinerman, the former chief executive of the now-extinct Mt. Gox cryptocurrency exchange Mark Karpeles will face a lawsuit for alleged fraud filed in 2014.
The court order issued this June 16, rejects Karpeles’ motion for a summary judgment, denying the former Mt. Gox chief’s claim that the sole remaining plaintiff in the case, Gregory Greene, had altered his argument against Karpeles by object to the motion, making multiple claims.
Judge Feinerman found that “Greene limited himself to adding details with the help of the discovery” and further added: “That does not violate the rule against altering the factual basis of a lawsuit in summary judgment.”
The lawsuit alleges that Karpeles falsely represented the security of user funds on the exchange and, according to the terms of service, the platform would securely guard customers’ assets, “allowing them to safely and quickly buy, sell, trade or withdraw.”
It is important to note that under the collapses suffered in the accounts of the Mt. Gox exchange, several users began to present withdrawal problems, which led Greene to make numerous unsuccessful attempts to withdraw their funds from the platform.
K.Villarroel
Source: cointelegraph
