Chicago man lobs class-action sueball at MtGox

[smoothrunnings]

The Bitcoin exchange accused of 'intentional and systematic' misappropriation of funds.

http://www.theregister.co.uk/2014/03/01/mtgox_sued/

http://www.reuters.com/article/2014/02/28/bitcoin-mtgox-lawsuit-idUSL1N0LX1QK20140228

I am sure more people will step up to the plate sooner rather than later filing their class action lawsuits against Mark and his mini empire MtGox. Let's face it, the money to fight class action lawsuits is a lot and even if Mark does managed to retrieve anything the likelihood he's going to be able to afford to continue with MtGox is not so good.

The Reuters news includes a way for people in the US to contact the court and or person who has filed class action lawsuit. I am sure this suit will grow as time goes on.

[thelema93]

They cannot be sued while they are re-structuring. They have not filed for bankruptcy. The main stream media are a bunch of incompetent morons who can't read properly. "Bankruptcy Protection"

[joehal]

I have a question. Let's say we have these 2 hypothetical situations :

1. Mt gox will restart and very slowly will repay all the money in 1 year - as long as nobody sues and they don't have to spend money on lawsuits

2. Mt gox is sued by everybody under the sun and as a consequence they will no longer be able to pay back all the money.

Is this something possible ? And if yes, shouldn't a judge, or some kind of laws prevent this from happening ?  I mean isn't the ultimate goal to pay back all the users ... instead of paying back only a percent ? and the rest spent on lawsuits and damage compensation

[grifferz]

I have a question. Let's say we have these 2 hypothetical situations :

1. Mt gox will restart and very slowly will repay all the money in 1 year - as long as nobody sues and they don't have to spend money on lawsuits

2. Mt gox is sued by everybody under the sun and as a consequence they will no longer be able to pay back all the money.

Is this something possible ? And if yes, shouldn't a judge, or some kind of laws prevent this from happening ?

That is what bankruptcy protection is for in Japan. However, I consider neither of the above to be a likely outcome. I think the most likely outcome will be:

MtGox and the Japanese authorities come up with a plan to wind up MtGox ASAP and reimburse the creditors who identified themselves and were able to prove their fiat deposits. Creditors therefore get a small fraction of their fiat back after a long wait. BTC holdings are not considered at all.

It would theoretically be possible to work out what happened to the bitcoins and reimburse customers to some extent, but I bet that Japanese law will take no position on the value of bitcoins and so will not force MtGox to do so, and MtGox will have no interest in doing this work.

I think pretty much everyone involved will end up screwed: fiat creditors screwed to a large extent, bitcoin creditors screwed completely.

Just my opinion.