• Wed, 21 Aug 2019, 12:45 AM
  • All times are UTC
  • Edition:
Copy link
Increase text size
Decrease text size
Link copied

Lawsuit filed against Mt. Gox founder for allegedly misleading clients


Thu, 27 Jun 2019, 00:26 am UTC

Crypto enthusiasts might remember the scandal that was the Mt. Gox incident in 2014, where over $400 million worth of bitcoins were stolen. Since then, the founder of the crypto exchange, Jed McCaleb has had to contend with numerous lawsuits accusing him of some serious crimes. The most recent one involves the controversial figure supposedly knowing about the security risks and keeping them hidden.

In the court filings detailing the accusations being leveled at McCaleb by traders, Joseph Jones and Peter Steinmetz, the Mt. Gox founder allegedly hid serious security issues discovered around late 2010. This was several years before the large theft of bitcoins, Cointelegraph reports and some of the digital currency have supposedly already been stolen at this point.

“Rather than secure the exchange, McCaleb sold a large portion of his interest in the then sole proprietorship, and provided avenues to the purchases to cover-up security concerns at the time without ever informing or disclosing these issues to the public,” the court filings read.

The main issue that the plaintiffs have with regards to this particular matter was the transparency of the exchange’s vulnerability. Had they known about its issues, the two noted that they would not have used its services at all.

“In deciding to use Mt. Gox as offered by Defendants, Plaintiff accepted as true the totality of representations and omissions made by representatives from Defendants that Defendants were uniquely qualified to properly provide the services needed to operate a successful and secure exchange per the needs of Plaintiffs and that Mt. Gox was properly funded,” the documents read.

For his part, McCaleb has yet to provide a statement regarding this new round of lawsuits against him, Coindesk reports. His exchange has already been closed for a long time but he is still being hounded by traders who lost a lot of money during the incident.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $10,763.30 (-1.07%)
  • Ethereum (ETH) $196.07 (-3.00%)
  • XRP (XRP) $0.274600 (-2.37%)
  • Bitcoin Cash (BCH) $315.10 (-2.64%)
  • Litecoin (LTC) $75.45 (-1.91%)
  • Bitcoin (BTC) $10,763.30 (-1.07%)
Aug 20, 2019 (Tuesday)
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
HSBC inks agreement to tap Identitii’s blockchain-based information exchange platform ‘Overlay+’
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Crypto Technicals: XRP/USD fails at 21-EMA, resumes weakness with 'Doji' formation
Israeli regulator seeks to expedite licensing procedures for fintech and blockchain firms
Crypto Technicals: Litecoin treads water below 200-DMA, bias bearish
bitFlyer teams up with Tpoint Japan to rollout bitcoin rewards program
Crypto exchange startup INX Limited eyes $129.5M IPO, marking the first SEC-registered security token sale
New York court denies Bitfinex, Tether's lack of jurisdiction claim
Crypto Technicals: BTG/USD recovery lacks traction, weakness likely to continue
Ethereum Foundation launches Korean version of its website, announces large-scale translation program
Crypto exchange BitMEX to block users in from Seychelles, Hong Kong, Bermuda
Cybersecurity veteran David Damato joins crypto exchange Gemini
Deloitte unveils demonstrational platform for blockchain solutions
Crypto Technicals: ETH/USD consolidates break above 200H SMA, potential 'Golden Cross' raises scope for upside
Crypto custodian BitGo poaches new Chief Revenue Officer from rival Xapo
97% of South Korean crypto exchanges on the verge of bankruptcy; blockchain startups now want to go overseas: Report
Philippines' central bank approves 2 new cryptocurrency exchanges
Association of Cryptocurrency Enterprises and Startups, Singapore rolls out new Code of Practice
Aug 19, 2019 (Monday)
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.