Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Mt. Gox founder won't appear for U.S. bankruptcy hearing
Author: Joel R. Glucksman
Date: April 25, 2014
Key Contacts
Back
Mark Karpeles, the founder of former Bitcoin exchange Mt. Gox, has announced that he will not be coming to the U.S. to answer questions about his company’s U.S. bankruptcy filing, according to Reuters. In a court filing, Mt. Gox lawyers cited a subpoena from the U.S. Department of Treasury’s Financial Crimes Enforcement Network, or FinCEN, as the reason that Karpeles wouldn’t appear in court.
“Mr. Karpeles is now in the process of obtaining counsel to represent him with respect to the FinCEN Subpoena. Until such time as counsel is retained and has an opportunity to ‘get up to speed’ and advise Mr. Karpeles, he is not willing to travel to the U.S.,” the filing said.
Mt. Gox lawyers also expressed that there was no guarantee that Karpeles would attend the May 5 deposition either, according to CNET.
Mt. Gox was the largest exchange of Bitcoin only a few months ago, but encountered trouble when it halted customer withdrawals on February 7, the news source explained. At the time, the exchange claimed that it was protecting customers from a flaw in the Bitcoin algorithm, but later claimed to have lost almost 750,000 customer Bitcoins and 100,000 of its own. At this point, the company filed insolvency proceedings in Japan and also filed for protection under Chapter 15 of the bankruptcy law in the U.S.
Karpeles has not been charged with a crime, CNET explains, but maintains that the Bitcoins were stolen via the same flaw in the Bitcoin algorithm. A number of Bitcoin activists, some of whom hacked Karpeles’s Reddit account and personal blog, allege that Karpeles is guilty of fraud.
This allegation was encouraged by reports from within the company that employees raised concerns with Karpeles over a year ago regarding an apparent discrepancy between company spending and income.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Mt. Gox founder won't appear for U.S. bankruptcy hearing
Author: Joel R. Glucksman
Mark Karpeles, the founder of former Bitcoin exchange Mt. Gox, has announced that he will not be coming to the U.S. to answer questions about his company’s U.S. bankruptcy filing, according to Reuters. In a court filing, Mt. Gox lawyers cited a subpoena from the U.S. Department of Treasury’s Financial Crimes Enforcement Network, or FinCEN, as the reason that Karpeles wouldn’t appear in court.
“Mr. Karpeles is now in the process of obtaining counsel to represent him with respect to the FinCEN Subpoena. Until such time as counsel is retained and has an opportunity to ‘get up to speed’ and advise Mr. Karpeles, he is not willing to travel to the U.S.,” the filing said.
Mt. Gox lawyers also expressed that there was no guarantee that Karpeles would attend the May 5 deposition either, according to CNET.
Mt. Gox was the largest exchange of Bitcoin only a few months ago, but encountered trouble when it halted customer withdrawals on February 7, the news source explained. At the time, the exchange claimed that it was protecting customers from a flaw in the Bitcoin algorithm, but later claimed to have lost almost 750,000 customer Bitcoins and 100,000 of its own. At this point, the company filed insolvency proceedings in Japan and also filed for protection under Chapter 15 of the bankruptcy law in the U.S.
Karpeles has not been charged with a crime, CNET explains, but maintains that the Bitcoins were stolen via the same flaw in the Bitcoin algorithm. A number of Bitcoin activists, some of whom hacked Karpeles’s Reddit account and personal blog, allege that Karpeles is guilty of fraud.
This allegation was encouraged by reports from within the company that employees raised concerns with Karpeles over a year ago regarding an apparent discrepancy between company spending and income.