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Japan’s Mizuho Bank Sued By MT Gox Customer

As per reports, Mizuho Bank in Japan is being sued by Mt Gox customers attempting to withdraw assets after the exchange platforms crash. Among the reports, the platform had apparently continued accepting deposits despite ceasing any withdrawal activity prior to its crash.


 

Outrage

Customers at Mt Gox are in dispute with Mizuho Bank, a financial institution in Japan, as a few clients from Mt Gox has accused Mizuho Bank of concealing its relationship with the collapsed exchange platform. Mark Karpeles, the chief executive officer of Mt Gox, reportedly kept the company’s bank account open within Mizuho prior to Mt Gox crashing and customers could not withdraw funds. Additionally, deposits were continuously accepted by the bank following the platforms unfortunate events.

At the beginning of 2014, Joseph deposited $40K USD within the Mt Gox account at the bank and the deposit was accepted. Within a month, the platform collapsed and has been permanently shut down which led to the Joseph Lack filed lawsuits against Mark Karpeles and the bank based on accusations of misleading information regarding the platform.

Additionally, he accuses the bank of fraudulence since the bank had continued to accept deposits and refusing withdrawals as well as charging for transactions during any deposit.

Denial

The bank has outright denied any accusations placed against it, attempting for a case dismissal with no luck. Courts in California also stood by Joseph Lacks accusations against the bank and no dismissal was granted. Bank attorneys then explained why the bank was still accepting deposits from customers given the circumstances.

According to the Japanese bank, transfers are passive in nature and customers, banks or clients do not communicate often during transactions like this and digital information is transferred from any machine to the bank and so on. According to Lack, the bank would have fully disclosed any information regarding its crash instead of keeping quiet and holding this crucial information from clients.

Further damages have been mentioned in the lawsuit as Lack attempts to force the bank to repay its clients. The bank account at Mizuho linked to Mt Gox saw customers from over 170 nations and around 30K users in the US. The bank continues to maintain an innocent stance as the case continues, believing that no error or crime was committed on their behalf.

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