US Court Dismisses Case vs Mt. Gox, Mizuho Bank for Lack of Jurisdiction

A US court has dismissed charges against Mt. Gox,its executive and Mizuho Bank for lack of jurisdiction.

A United States court on Friday dismissed for lack of jurisdiction the charges against the now-defunct Mt. Gox digital currency exchange and Mizuho bank of Japan about the exchange bankruptcy in February 2014, reports

The Pennsylvania district court granted the motion of Mizuho to junk the case filed against them by Gregory Pearce, one of 24,000 users who lost money when the digital currency platform collapsed in 2014 following the theft of nearly 70% of Mt. Gox’s Bitcoin holdings from hackers.

Part of the decision of the District Court of the Eastern District of Pennsylvania in the US read:

“Submitted before this Court by Mizuho’s Motion to Dismiss for Demerits to Establish an Injunction and for Lack of Jurisdiction (Exhibit 11); Pierce’s Response in Opposition to that Motion to Dismiss (Exhibit 12), as well as Mizuho’s Memorandum of Response Law (Exhibit 13); and for the reasons set forth below, Mizuho’s Motion for Lack of Jurisdiction is Granted.”

The decision also dismissed the charges against Mt. Gox CEO Mark Karpeles.

Mt. Gox, one of the earliest established cryptocurrency exchange closed shop in 2014, five years after its founding in 2009 after it fell victim to massive cyber attack which resulted to the loss of an estimated 850,000 Bitcoin (BTC) which were valued at $450 at the time of the attack. The closure of the virtual currency exchange platform is one of the significant cyber attacks in the cryptocurrency space.

The court added, “Bitcoin (BTC) is a digital cryptocurrency that can be used as money. It can be exchanged for traditional currencies such as the US dollar, or used to purchase goods and services. Unlike traditional fiat currencies, Bitcoin (BTC) is not backed by any government or verified by any bank, but each transaction is recorded in public, decentralized ledger called a blockchain.”

Last month, Mt. Gox civil rehabilitation trustee Nobuaki Kobayashi said creditors of the closed crypto exchange platform who still have their login credentials could file their rehabilitation claims online.

Kobayashi said the online applications system is now available, and creditors can submit their claims, whether they provided any proof during the early stage of the bankruptcy proceedings or not.