Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Mt. Gox founder won't appear for U.S. bankruptcy hearing
Author: Joel R. Glucksman
Date: April 25, 2014
Key Contacts
Back
Mark Karpeles, the founder of former Bitcoin exchange Mt. Gox, has announced that he will not be coming to the U.S. to answer questions about his company’s U.S. bankruptcy filing, according to Reuters. In a court filing, Mt. Gox lawyers cited a subpoena from the U.S. Department of Treasury’s Financial Crimes Enforcement Network, or FinCEN, as the reason that Karpeles wouldn’t appear in court.
“Mr. Karpeles is now in the process of obtaining counsel to represent him with respect to the FinCEN Subpoena. Until such time as counsel is retained and has an opportunity to ‘get up to speed’ and advise Mr. Karpeles, he is not willing to travel to the U.S.,” the filing said.
Mt. Gox lawyers also expressed that there was no guarantee that Karpeles would attend the May 5 deposition either, according to CNET.
Mt. Gox was the largest exchange of Bitcoin only a few months ago, but encountered trouble when it halted customer withdrawals on February 7, the news source explained. At the time, the exchange claimed that it was protecting customers from a flaw in the Bitcoin algorithm, but later claimed to have lost almost 750,000 customer Bitcoins and 100,000 of its own. At this point, the company filed insolvency proceedings in Japan and also filed for protection under Chapter 15 of the bankruptcy law in the U.S.
Karpeles has not been charged with a crime, CNET explains, but maintains that the Bitcoins were stolen via the same flaw in the Bitcoin algorithm. A number of Bitcoin activists, some of whom hacked Karpeles’s Reddit account and personal blog, allege that Karpeles is guilty of fraud.
This allegation was encouraged by reports from within the company that employees raised concerns with Karpeles over a year ago regarding an apparent discrepancy between company spending and income.
- Practices: Blockchain, Cryptocurrency Defense & Investigations, Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
Author: Sean M. Pena
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.