Ill. Court Rejects Bid To End Mt. Gox Bitcoin Fraud Suit

Law360 (March 13, 2019, 6:10 PM EDT) -- An Illinois federal court on Tuesday rejected a bid to end a putative class action brought by customers of a now-defunct bitcoin exchange who say they were ripped off, finding that continued reassurances from the exchange's customer service desk to Illinois residents establishes jurisdiction.

U.S. District Judge Gary Feinerman said that Mark Karpeles, the founder of Mt. Gox, cannot evade the class' allegations of negligence and fraud. Karpeles sought dismissal on the grounds that he had no connection to Illinois because he never purposely directed business to the state, but the court disagreed.

"Online communications in furtherance of an allegedly fraudulent...

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Court

Illinois Northern

Nature of Suit

190(Contract: Other)

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Date Filed

February 27, 2014

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