US court upholds fraud charges against former head of Mt.Gox

by in Cryptocurrency News

Mark Karpeles Mt.Gox court

The U.S. District Court dismissed the appeal of former CEO Mt.Gox exchange Mark Karpeles. He petitioned for the removal of fraud allegations made by the last remaining plaintiff, reports Cointelegraph.

District Judge decided in favor of Gregory Greene, the initiator of a class action lawsuit against Karpeles. The plaintiff insists that the head of the site did not provide an appropriate level of protection for user funds, accusing him of negligence and fraud.

Karpeles insisted that Greene changed his initial testimony, adding many new charges. He also called into question the jurisdiction of the United States in this matter. The judge noted that the plaintiff only brought in new details as they were discovered, which does not violate the procedure for conducting the trial.

Related: Craig Wright BTC address is associated with hacking of MtGox

Greene opened an account on Mt.Gox in 2012, losing 42.9 BTC as a result of the termination of the exchange. At the rate of that time, its assets cost about $25,000, at the moment this amount has grown 16 times ($405,000).