Mt. Gox CEO Karpeles refuses travel to U.S. for questioning

Karpeles refuses to travel to US for questioning

Mt. Gox CEO Mark Karpeles refuses to travel to the U.S. for questioning. Plaintiffs find this unacceptable, after they offered to pay all travel expenses.

Mark Karpeles must be one of the most talked about people in the world of Bitcoin. Normally, one would be happy to be a trending topic but in Karpeles’ case, I highly doubt that’s the case. The Mt. Gox CEO is held responsible for all the bankruptcy of his exchange and has several lawsuits waiting. Today, news came out Karpeles is refusing to travel to the United States for questioning, after creditors of the failed exchange were trying to force him.

Unacceptable behavior

Gregory Greene and Joseph Lack asked a U.S. judge to order Karpeles to go to the U.S. for a deposition, according to a motion filed Tuesday in U.S. Bankruptcy Court for the Northern District of Texas, Dallas division, which granted the exchange temporary protection from creditors.

The filing states that Karpeles has to testify in the U.S. in order to protect domestic creditors. As CEO, he was heavily involved with the management of Mt. Gox and he has extensive knowledge of its coding and operations.

Karpeles did not like this order. It’s clear he does not want to travel to the U.S., and he proposed to go to Taiwan instead. There, he would allow lawyers to question him in person or via video link. Obviously, Greene and Lack found this unacceptable, calling it “an unjustifiable misuse of judicial resources.”

To show how much the plaintiffs would like to see Karpeles board a plane to the States, they offered to pay all travel expenses. “He is someone who has availed himself of the protection of the United States courts and he wants all the advantages of a foreign representative who’s been forthright, transparent and open without being forthright, transparent or open,” Steven Woodrow, a Colorado-based lawyer for the plaintiffs, said.

“Most foreign representatives, from our research, who have availed themselves of the United States courts, are more than willing to come to the United States to justify the relief that they’re seeking,” Woodrow added. “For some reason, Mr. Karpeles seems averse to coming to the United States. His attorneys won’t tell us why.”

A story of lies

Greene and Lack are plaintiffs in a class-action lawsuit against Mt. Gox. This lawsuit accuses Japan based Bitcoin exchange of massive fraud and theft of Bitcoin and currency worth hundreds of millions of dollars.

Since the shutdown of Mt. Gox in February, the exchange has filed for bankruptcy protection in Tokyo and Texas. It became clear that Mt. Gox was missing 850,000 Bitcoins, supposedly due to a bug in their system called transaction malleability. Whether this is true or not, has been topic of debate all over the internet. People doubt Karpeles is telling the real story behind the exchange’s failure. Especially since a few days ago, when Karpeles announced Mt. Gox suddenly found a lost wallet containing 200,000 Bitcoins.

On top of that, several sources are reporting that the whole transaction malleability story is ready to be debunked. CCN wrote an informative article on this just yesterday. The whole story is unfolding into a complete saga, where people won’t know who or what to believe anymore. As usual, we’ll have to wait a while before we get to see the truth behind this. Let’s just hope that day comes swiftly so we can move on past the remnants of this disaster. It has hurt Bitcoin long enough.

13 Responses

  1. hello

    ‘Muricans feeling entitled again. Karpeles is not american, and his business is japan based, their customer is world wide. So If the US creditors want to question him, then THEY should be the one to travel to gox’ office in japan. Karpeles must be farting hearing a flea from a feeling entitled child called ‘murica.

    Murica: We have many questions regarding the issues with your company. We will provide your accommodation and everything, come visit us in US.
    Karpeles: Lulz? *loling while shipping starbukcs coffee*

    • Avatar of Christoph Marckx
      Christoph Marckx

      You have a point. What most American people feel is that he appeals for protection in the US. They think that, if he doesn’t want to go there to answer questions, the US shouldn’t be bothered with his claim for protection as well. I guess there’s several sides to the story, a case can be made for every one of them.

    • Jesse

      He is the one that sought bankruptcy protection in the US. You want that protection? Play by the rules.

      • ToastBTC

        Agreed – If he really is like LULZ then he shouldn’t care about us bankruptcy protection. If he wants to protect his US companies and fanbase he better show up for a disposition.

    • ToastBTC

      Hello : Actually “some” of his businesses are based in Japan. Two are based in the US. No entitlement here – I am a french person living in the states – and I want him to come here. The courts here are at least more fair than at home. And definately much more even then Thailand/malaysia where he is proposing to restart the business. Plus the majority of his business is here. He isn’t a terrorist – he wouldn’t be treated as such.

      As for travel to Japan – they did. He refused to do it there as well. Also – Two completely seperate court cases. One is over Tibanne/Mt.Gox Japan one is against Dwolla and US Mt. Gox, Mt. Gox’s Wells Fargo, etc. He applied for protection here – if he want’s the US to protect his assets he needs to be present to assert that right.

      As a fellow frenchman – fuck you karpeles.

  2. Sturle

    Why would anyone *not* refuse to travel to the US? One of the most violent countries on Earth, known for their complete lack of respect for human rights and random arrests, torture and locking foreign people forever on no legal basis? Seriously.

    • Avatar of Christoph Marckx
      Christoph Marckx

      It’s not like they’re accusing him of terrorism… He has to answer to thousands of americans who saw their hard-earned money disappear. The least he can do is show them the respect of giving a proper statement as to why he won’t go there. He just turned down every opportunity to say anything about this.
      If he would have said “Fuck U.S., they’ll lock me away for good. I’ll talk to them from Taiwan.”, that would have been enough. Now, he’s just ignoring his customers’ requests. Again…

      • Red

        Karpeles is a child. He wanted to do stuff without having to deal with consequences and this situation put him in a fast growing-up scenario.

        He didn’t care about Mt Gox. He wanted to play with a toy: Magic the Gathering. Bitcoin was a toy and now everybody looks at him all serious and asking for explanation why the toy broke. Who cares? Get yourself a new toy. He didn’t care about the exchange, wasn’t he thinking about something else? Some Bitcoin caffee? He was already bored of it and wanted something else.

        I understand him “not wanting to live on this planet anymore”.

        “Where is the money?”, he is asked. That’s grown-up territory. Money, money, money…

  3. benedictmiller

    Why don’t they just question him through Skype / Video chat / etc? And what the hell is the purpose of going to Taiwan, or going anywhere at all for that matter?

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Avatar of Christoph Marckx

Internet addict and virtual currency aficionado living in Belgium. I work in a school, where I am responsible for every computer and the entire network that keeps our students connected to the world. I love cryptocurrencies, mostly because it gives us a chance to take back our freedom. If we do this right, there are exciting times ahead!