The former owner and manager of the MtGOX exchange still cannot get rid of the prosecution. Now he is faced with another lawsuit filed against him in Philadelphia.
According to Reuters, District Judge Robert Kelly (Robert Kelly) rejected Karpeles’s statement to dismiss the case against him in connection with the Tokyo court decision already made. Now, the former director of MtGOX has to endure another process against users affected by the bankruptcy of the exchange.
According to the court, the case was opened by the former user of the exchange Gregory Pierce and other victims in 2014. They claim that Karpeles, who was the sole manager of the exchange, “was well aware of the security system defects, but never spoke about them publicly.”
Carpeles ’argument that the Philadelphia court does not have jurisdiction over the Tokyo-based exchange was rejected by Judge Kelly. The court document states that Pierce ordered a physical security key for MtGOX with delivery to Philadelphia, so the case can be considered in a local court. Initially, the lawsuit featured the Japanese Mizuho Bank, which kept the MtGOX fiat assets, but he was excluded from the case, and now Karpeles remains the only defendant.
In March, Mark Carpeles was sentenced by the Tokyo court to 2.5 years in prison for falsifying documents and found not guilty on the remaining charges. In this case, the punishment was actually replaced by a suspended sentence.