Mt. Gox users prepare to file “multi-plaintiff” suit as exchange keeps deferring BTC withdrawals

By February 20, 2014Bitcoin Business
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Mt. Gox users prepare to file “multi-plaintiff” suit as exchange keeps deferring BTC withdrawals

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Mt. Gox promised an update for this Thursday (20) and delivered, but the statement’s content was not at all what the clients were expecting. Confronted with the exchange’s refusal to announce a date to resume BTC withdrawals, some users are planning to lead off a legal process similar to a class action lawsuit against the company in order to get their money back.

The new statement doesn’t add a lot to the Japan-based exchange’s previous announcement. “In addition to the technical issue, this week we have experienced some security problems, and as a result we had to relocate Mt. Gox to our previous of?ce building in Shibuya. The move, combined with some other security and technical challenges, pushed back our progress”, the most recent document adds.

Mt. Gox recognized that this new statement is not much more than an ”update on an update”, but didn’t add any more information.

As a result, Bitcoin’s price at Mt. Gox keeps shrinking: the exchange’s value is currently lower than $120, the lowest price registered by the cryptocurrency since August 2013.

Fed up with the successive postponing of the withdrawals – besides the possibility of a new requirement to hold verified accounts in order to withdraw BTC from the exchange -, one of Mt. Gox’s customers decided to launch a “multi-plaintiff” lawsuit and is looking for more people willing to sue the exchange.

‘Nmersulypnem’ announced the lawsuit this Thursday (20) on the forum. “I have contacted the offices of my law firm in Tokyo to begin proceedings to sue Mt.Gox / Tibanne Ltd / Mark Karpeles for my USD funds. He advised me that suing for USD is much more reliable than suing for BTC (since the price varies and bankruptcy collection on BTC has an unclear legal process). Given the liquidations we see on Mt. Gox we believe that there are likely other large plaintiffs filing suit, so we want to move quickly”, the user wrote on the forum.

After the announcement, ‘nmersulypnem’ added that he had received “a huge number” of messages from people interested in joining the action. All users with at least $10,000 in Mt. Gox can become part of the group lawsuit.


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