New Mt. Gox class action in U.S.

[CompNsci]

Given the lack of information coming out of the trustee for Mt. Gox in Japan, I'm beginning to think another class-action lawsuit in the U.S. may be the best way to go. The settlement with Sunlot is a pile of nonsense in my opinion -- how can one reasonably agree to a settlement before one even knows what was going on at Mt. Gox?

My understanding is that the class in Greene vs. Mt. Gox was never certified, so that it should be possible to start another class action, does that seem correct?

I am also searching for the Motion for Preliminary Injunction of April 8, 2014. According to exhibit 2 of the preliminary settlement, this 34 page document sets forth the results of the Plaintiffs discovery efforts. It seems like this could be an interesting read. Any pointers?

[CompNsci]

Found the documents on Pacer for case 1:14-cv-01437. Posted on scribd with all exhibits for those who may be interested: http://www.scribd.com/doc/225373622/Greene-vs-MtGox-Preliminary-Injunction-8-April-2014

[Nagle]

Is this the lawsuit "settled" via the Sunlot deal? Are the terms of that available as court records?

[DrApricot]

Is this the lawsuit "settled" via the Sunlot deal? Are the terms of that available as court records?

Why do you suppose the plaintiffs were so quick to settle? Could there have been a flaw in their case, such as having listed the wrong set of defendants? Should a new class action suit be filed, it would be good not to repeat mistakes, if any, made by the earlier one.

[traderash@aol.com]

The Plaintiffs probably got a much better deal plus a huge fee for their attorney. It is my understanding that the dropping of the complaint was only toward Gox, Gay Pierre and the former owner of Gox. However, Karpeles is not off the hook. He will probably cut some kind of deal to "find" more "lost" Bitcoins if he gets a piece of the action.

I wonder if we can pierce the corporate veil and go after Karpeles directly for negligence and spending our money on doughnut shops and domain names? I doubt Japan has any sort of criminal negligence liabilities in their civil laws.

I am still hoping Karpeles was not lying when he said the Bitcoins were not lost, just "temporarily unavailable" and that the government froze them.

Thank you for the Pacer files!

[traderash@aol.com]

I also wonder if it is possible to sue the Japanese government for failing to find the coins or release any information to people that might be able to. There must be some sort of time line where they must make an arrest or at the bare minimum give a statement that they are purposely not making any statements for a good reason.

I think everybody knows that if they were not making statements for a good reason they would tells us. Since they are not making any comments or giving any updates, it sounds like a clusterfuck over there. They barely even heard of Bitcoin. I can just picture 3 Japanese Barney Fifes sitting trying to figure out this crime.

The longer they keep waiting and don't find the coins the colder the trail and the less chance we have at finding them ourselves. It would take me about 20 minutes in a room alone with Karpeles and I would know exactly where the coins are.

A couple of Jelly doughnuts, a pair of pliers, a hammer and a rusty tuna can lid would get him to talk.

[Massimo80]

It would take me about 20 minutes in a room alone with Karpeles and I would know exactly where the coins are.

If he knows where they are and how to get them back.

Which, being him Mark Karpeles, I highly doubt.

[CompNsci]

Is this the lawsuit "settled" via the Sunlot deal? Are the terms of that available as court records?

Yes the settlement and all documents are available through the Pacer system.

That particular class action was settled, but I don't believe the class was certified. This suggests another class action lawsuit could be started if needed, particularly in another district. They could eventually be consolidated, but that would be a later action.

[CompNsci]

I wonder if we can pierce the corporate veil and go after Karpeles directly for negligence and spending our money on doughnut shops and domain names? I doubt Japan has any sort of criminal negligence liabilities in their civil laws.

Working on this presently. It is likely possible.

[brioche]

really would be good to have a way to recover from our losses; even if we don't get back all of it.

[LostDutchman]

Given the lack of information coming out of the trustee for Mt. Gox in Japan, I'm beginning to think another class-action lawsuit in the U.S. may be the best way to go. The settlement with Sunlot is a pile of nonsense in my opinion -- how can one reasonably agree to a settlement before one even knows what was going on at Mt. Gox?

My understanding is that the class in Greene vs. Mt. Gox was never certified, so that it should be possible to start another class action, does that seem correct?

I am also searching for the Motion for Preliminary Injunction of April 8, 2014. According to exhibit 2 of the preliminary settlement, this 34 page document sets forth the results of the Plaintiffs discovery efforts. It seems like this could be an interesting read. Any pointers?

Yeah.

Forget about it.

The company is located in Japan.

[mastor_blastor]

There's a new announcement on mtgox.com that says there is a hearing to recognize the "amended recognition petition" for bankruptcy in Texas on June 17th.

Can anybody explain what that means?

[LostDutchman]

There's a new announcement on mtgox.com that says there is a hearing to recognize the "amended recognition petition" for bankruptcy in Texas on June 17th.

Can anybody explain what that means?

It means another delay.

Remember that the main bankruptucy is filed in The Land of The Rising Sun and what Texas does has no effect on things there at all.

[invisiblefriend]

any new suits plz keep advised

Im in --


I really believed in SunLot though??   

 
think we should be in texas ? -- its gunna be tough going to Japan as if that will matter either

[Jcw188]

Gox did business in the US so you can get at them here. The problem is they don't have assets here do they?  You could try piercing the corporate veil but how are you going to serve karpeles if he never comes to the US again?

[LostDutchman]

Gox did business in the US so you can get at them here. The problem is they don't have assets here do they?  You could try piercing the corporate veil but how are you going to serve karpeles if he never comes to the US again?

It's over.

Move along now.

Nothing to see here.

[DrApricot]

I also wonder if it is possible to sue the Japanese government for failing to find the coins or release any information to people that might be able to. There must be some sort of time line where they must make an arrest or at the bare minimum give a statement that they are purposely not making any statements for a good reason.

I think everybody knows that if they were not making statements for a good reason they would tells us. Since they are not making any comments or giving any updates, it sounds like a clusterfuck over there. They barely even heard of Bitcoin. I can just picture 3 Japanese Barney Fifes sitting trying to figure out this crime.

The longer they keep waiting and don't find the coins the colder the trail and the less chance we have at finding them ourselves. It would take me about 20 minutes in a room alone with Karpeles and I would know exactly where the coins are.

A couple of Jelly doughnuts, a pair of pliers, a hammer and a rusty tuna can lid would get him to talk.

The asset stripping could never have been pulled off without at least tacit cooperation from Mt. Gox's bank, Mizuho, in regards to the "missing" $27 million in bank deposits.

The Japanese government is responsible for policing their banks and making sure that they don't engage in fraud. If the regulators slipped up this time, then they could be liable.

More importantly, it is very bad political juju in Japan for the authorities to permit any activities that further trash the country's attractiveness as a direct foreign investment destination. It wouldn't hurt to put a little pressure on the financial regulators in Japan to straighten out this mess, if a way can be found.

[edmundedgar]

I also wonder if it is possible to sue the Japanese government for failing to find the coins or release any information to people that might be able to. There must be some sort of time line where they must make an arrest or at the bare minimum give a statement that they are purposely not making any statements for a good reason.

I think everybody knows that if they were not making statements for a good reason they would tells us. Since they are not making any comments or giving any updates, it sounds like a clusterfuck over there. They barely even heard of Bitcoin. I can just picture 3 Japanese Barney Fifes sitting trying to figure out this crime.

The longer they keep waiting and don't find the coins the colder the trail and the less chance we have at finding them ourselves. It would take me about 20 minutes in a room alone with Karpeles and I would know exactly where the coins are.

A couple of Jelly doughnuts, a pair of pliers, a hammer and a rusty tuna can lid would get him to talk.

This is a really good idea. The asset stripping could never have been pulled off without at least tacit cooperation from Mt. Gox's bank, Mizuho, in regards to the "missing" $27 million in bank deposits.

I don't think we know that either way. It's not the bank's job to check everything their customers are doing and make sure they're not ripping anybody off. It may turn out that Mizuho were aware of something illegal or robbed Gox themselves, but I don't think there's any evidence of that in the public domain at the moment. Wait and see what the police and the trustee come up with, if anything.

The Japanese government is responsible for policing their banks and making sure that they don't engage in fraud. If the regulators slipped up in this time, then they could be liable.

Japanese courts are very deferential to authority. Your chances of producing anything except some legal proceedings at your own expense are not very high.

More importantly, it is very bad political juju in Japan for the authorities to permit any activities that further trash the country's attractiveness as a direct foreign investment destination. It wouldn't hurt to put a little pressure on the financial regulators in Japan to straighten out this mess, if a way can be found.

They're much more likely to conclude that this bitcoin whole thing is a huge PITA, brush the Gox business under the carpet and do what they can to make life difficult for other bitcoin-related businesses.

[DrApricot]

More importantly, it is very bad political juju in Japan for the authorities to permit any activities that further trash the country's attractiveness as a direct foreign investment destination. It wouldn't hurt to put a little pressure on the financial regulators in Japan to straighten out this mess, if a way can be found.

They're much more likely to conclude that this bitcoin whole thing is a huge PITA, brush the Gox business under the carpet and do what they can to make life difficult for other bitcoin-related businesses.

I'm not sure how you know this, edmundedgar. Japan may have a lot more at stake with bitcoin than may otherwise seem:

"Bitcoins are an example of technology allowing less emerging nations to "leapfrog" the conventional process of technological development.  In China, cellphones achieved widespread use before the creation of fixed-line phone networks is completed, another example of leapfrogging. Britain was late to adopt electricity because its streets were lighted by gas lamps. Germany and Japan used electricity from the beginning.

     The same thing is highly likely to occur in the financial system.

     If Myanmar and Bangladesh gain power as exporters, Asia's trade map will be greatly affected. In such circumstances, big business opportunities will be created in the bitcoin infrastructure field.

     Worldwide merchandize trade amounts to 1,500 trillion yen ($14.63 trillion) per year. Commission fees are at least 3%, or 45 trillion yen. The fees alone will create a huge market as far as the bitcoin is concerned."

http://asia.nikkei.com/Politics-Economy/Economy/An-Asian-trade-revolution-in-the-making

[jeffersonairplane]

Nothing beneficial will come out of this. It's just better for everyone to take the loss.