Cross border insolvencies and financial restructurings are remarkably opaque considering we live in the Information Age. The mission of the Centre of Main Interest (the COMI) is to light some candles in the darkness and create a forum for further discussion. The Law Offices of Tally M. Wiener, Esq. are pleased to publish the COMI blog.
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Friday, March 14, 2014
Bankrupt Mt. Gox Bitcoin exchange hit with lawsuit as Canadians seek $500-million compensation
Is there not a stay of litigation in place that precludes the lawsuit from going forward with respect to bankrupt Mr. Gox?
TORONTO — A proposed class action will seek $500 million in compensation for Canadians with deposits in what was once the largest Bitcoin digital-currency exchange in the world, according to a court notice filed Friday.
The lawsuit targets Mt. Gox and its two owners, Mark Karpeles and Jed McCaleb, as well as one of the largest banks in Japan, according to the notice of action to Ontario Superior Court.
Among other things, the action alleges negligence, breach of contract and fraudulent misrepresentation — none of which has been proven in any court.
Toronto litigation lawyer Ted Charney said Mt. Gox held an estimated US$465 million in trust for its clients and millions of dollars belonged to Canadian users.
The company has offered no accounting for how much non-Bitcoin currency it held or what happened to money that was supposed to have been kept in trust, he said.
Fore more, see http://business.financialpost.com/2014/03/14/bankrupt-mt-gox-bitcoin-exchange-hit-with-lawsuit-as-canadians-seek-500-million-compensation/