By Dale Henry

Chicago US District Judge Gary Feinerman has ruled in favor of allowing a class action lawsuit against Mizuho bank to more forward. 

Mizuho Bank failed to convince the court that it would be too difficult for its lawyers to handle a bitcoin exchange related case outside Japan or that it has no jurisdiction because the infamous MtGox was based in Tokyo. 

Mt Gox Class Action

According to the lawsuit Mizuho "stood silent while allowing the public to continue being duped." and goes on to accuse the Japanese bank of not revealing the full extent of the problems faced by the exchange from American depositors.

As many may remember Mark Karpeles and company stated there were some "technical difficulties" regarding withdrawing funds.  The lawsuit builds on that stating that Mizuho limited withdrawals starting in the middle of 2013 when the things began imploding, while at the same time kept accepting unlimited deposits and in doing so just added the the amount lost by users of the once largest bitcoin exchange. Mizuho managed all of MtGox’s American fiat deposits and withdrawals.

MtGox went bankrupt in February 2014 when it reported the "disappearance" of 850,000 bitcoins worth over $450 million at the time. Last year, the former CEO Mark Karpeles was arrested by the Tokyo Metropolitan Police department for embezzling over 50 million from MtGox.

This was the correct call by Judge Feinerman, the victims are in the United States and that is where the suit is filed.

Article by Dale Henry
Banner Image by dinbits staff

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