Mt.Gox Multi-plaintiff Suit

[pickaname]

I have contacted the offices of my law firm (Bingham) in Tokyo to begin proceedings to sue Mt.Gox / Tibanne Ltd / Mark Karpeles for my USD funds.  He advised me that suing for USD is much more reliable than suing for BTC (since the price varies and bankruptcy collection on BTC has unclear legal process).  We believe that there are numerous other plaintiffs in the early stages of filing suit and suspect that is why it appears that accounts are liquidating to cash on Mt Gox.

If you are interested in being co-plaintiffs in this suit, please PM me (I'm happy to split legal costs), and I will put you in touch with the partner I am dealing with.  Note that you will need to provide full proof of identification as well as proof of account ownership on Gox (to be provided to Bingham, not myself).

In general, a class action type suit is most likely to get everyone their funds (or fair percentage thereof) than if we all file separate law suits.

TL;DR please sell your coins for USD on gox so i can buy them cheaper?

No, you do not need to sell your coins.  But when it comes time to file the suit, you'll have to list the USD you are suing for - and you can only collect what you declare as your holdings.  The initial filing should be ready be middle of next week.

Due their carelessness that has caused such low prices, they have effectively halted the growth of bitcoins throughout all exchanges and not just Mt. Gox. Can investors using other exchanges hop on this class action boat for their losses following Mt.Gox's statements. The investor and public confidence was much stronger before this event, and therefore making Mt.Gox reliable for any expected price levels that now will never be reached.

[nmersulypnem]

I own around 60 btcs and 0 usd in Mt Gox's possession.

I live in Australia.

What are my options? Can I participate? What would be legal costs approximately?

Anyone can sue.  You will need to decide before we file if you want to liquidate and sue for cash, or try to sue for BTC.  I clarified with the lawyer that we CAN sue for BTC, but if the price drops, they are only required to provide the BTC, and if the price increases, they may make an argument that the value at the time of the suit was what should be paid.  So, it get's hairy.  Also, it is not clear how a legal order can force BTC transfer...  so, obviously, you're taking a much bigger risk suing for BTC.

[MakeBelieve]

This is interesting I will be following this and see if it is serious or not.

[raskul]

good to see some action being taken. finally. good luck to all who are fighting for what is their own.

[dreamspark]

Good luck but I doubt you will get anything from them for a while, its been a week since btc withdrawals were closed, hardly enough time in the eyes of the law to do a full audit and fix any problems. Not saying that gox isnt stalling but a law suit at this stage seems premature.

[raskul]

Good luck but I doubt you will get anything from them for a while, its been a week since btc withdrawals were closed, hardly enough time in the eyes of the law to do a full audit and fix any problems. Not saying that gox isnt stalling but a law suit at this stage seems premature.

so you find it acceptable for gox customers who have waited MONTHS for funds, to just sit twiddling their thumbs?
If I said to you, i have your €6000, but i'm going to keep it for 6 months and earn interest in my bank before I give it back to you, what would you say to me?
you'd say 'oh i'm just a sock puppet for gox, trying to calm tensions on this internet forum - please keep my €6000 and earn interest from it'

yup. 

[FrictionlessCoin]

I own around 60 btcs and 0 usd in Mt Gox's possession.

I live in Australia.

What are my options? Can I participate? What would be legal costs approximately?

Anyone can sue.  You will need to decide before we file if you want to liquidate and sue for cash, or try to sue for BTC.  I clarified with the lawyer that we CAN sue for BTC, but if the price drops, they are only required to provide the BTC, and if the price increases, they may make an argument that the value at the time of the suit was what should be paid.  So, it get's hairy.  Also, it is not clear how a legal order can force BTC transfer...  so, obviously, you're taking a much bigger risk suing for BTC.

Of course you can sue for BTC.   The price of BTC is not what Mt.Gox says it is,  it is what the market says it is.

It is like any commodity held by a custodian.  If this were a storage facility for gold, then if they held gold, it does not matter what the price of gold is,  they still have to return gold.

[roundrobin]

And what are the options for small holders? The ones that have 2 or 3 BTC stuck at MtGox, which at the time of their shutdown was worth around $1500-$2000 (which to some people is a lot of money.)

[yumei]

The faster you sue MTGox, the better are your chances to get anything later. First come, first serve    
precept if he is really insolvent.

If MTGox is already out of money you should try to sue Mark Karpeles directly, because of his liability.

[medialab101]

I'm a permanent resident of Japan with more than a few coins locked up in Gox. I'll follow this thread closely.

[raskul]

I'm a permanent resident of Japan with more than a few coins locked up in Gox. I'll follow this thread closely.

friend, see the post above yours, you should really seek legal advice as soon as possible.

[MakeBelieve]

The faster you sue MTGox, the better are your chances to get anything later. First come, first serve    
precept if he is really insolvent.

If MTGox is already out of money you should try to sue Mark Karpeles directly, because of his liability.

I have no clue about suing anyone and thats why I haven't proceeded to do so and I think a lot of others are in the same boat as me.

[Spekulatius]

In case this ever becomes a bankruptcy case I hope it goes better then the Bitcoinica case...

(because I got funds locked up in Gox as well!)

[Dimelord]

Sue them to the moon boys!!!!

[yumei]

I have no clue about suing anyone and thats why I haven't proceeded to do so and I think a lot of others are in the same boat as me.

Thats your chance, you should contact the OP and talk to him directly as he is offering other people to sue MTGox as well.
If you want to sue him personally, the first thing you should do is to contact a civil lawyer who is specialized in this kind of branch. To sue him directly in japan with a japanese lawyer has some benefits.

[nmersulypnem]

FYI, everyone.  I appreciate the participation here, but if you want to be involved in the suit, you need to PM me and I'll give you the partner's information to contact by end of day Friday Tokyo time (we are filing next week).

You should not follow this thread expecting to see a lawsuit update after we file.  It is typical that these cases are settled with a confidentiality clauses which will prevent any of us from discussing that there was even a settlement.  (this is why I suspect Gox has likely already settled with some of the larger holders).

[Brisance]

With litigation your Mt.Gox account could and most likely will become frozen pending the outcome of any settlement which "could take years" pending appeals and if any actual payment to your bank account.

You must considered the outcome of your Mt.Gox account becoming frozen during the litigation process, and the "possibility" that BTC withdraws "may" become available again in the the short term which could mean those who waited see their BTC before those who litigate.

Litigation is a long and costly battle and you must seriously consider all your options and avenues before heading down that path.

Having said that I'm personally willing to fight this out and look forward to the day Mt.Gox owns up to all it's incompetence.

[greenalliancegroup]

Finally someone is standing up to that Pokemon Mark Karpeles. Hope the attorneys there in Japan get every single penny back from that crook.

[igorr]

Mtgox is the same as the Edward Snouden.
It is not possible in another country

[ecke84]

I'm in!! Tell me What to do. I have 135 btc on gox.