US Mt Gox Victims Score Legal Win Against Infamous Bitcoin Exchange

Greene and Motto aim to hold Karpeles personally liable for the loss of their funds due to his role as leader of the defunct and compromised exchange during the time of bankruptcy.Karpeles’ defense team argued that the case should be stayed to conserve judicial resources and avoid frivolous legal expenses on all sides, also stating that a class action was not the appropriate channel to resolve the dispute between Karpeles and the former Mt Gox customers.Part of Karpeles’ defense is the argument that 200,000 of the stolen bitcoins have been tracked and recovered and have significantly increased in value, which could be viewed as compensation for the victims.On the other hand, it seems illogical to ignore the fact that this would have resulted in massive profits for any clients choosing to hold the entirety of their cryptocurrency funds through the astronomical price gains seen since the exchange collapsed and went bankrupt, making Karpeles’ claims dubious at best.Judge Gary Feinerman of the Illinois Northern District Court denied the motion, allowing the case holding Karpeles personally liable to proceed.