Class Action Against Mt. Gox: Hundreds Are Ready

Hundreds Ready For Class Action Against Mt. Gox

More than four hundred people have indicated that they would collaborate in a class action against Mt. Gox, said Selachii, a British based law firm. Mt. Gox was one of the largest bitcoin exchanges before its downfall earlier this month.

The Loss

On February 28, Mt. Gox disclosed that the exchange has lost over $470 million worth of bitcoins. In an effort to regain some of the losses that Mt. Gox accused to be a result of hacking, the lawsuit is being considered as a viable option. A customer based in the United States is already suing the bitcoin exchange for alleged negligence and fraud.

Class Action

The deadline for submissions to join the class action against Mt. Gox is March 7th. As explained by Richard Howlett, the co-founder of the law firm, the list of plaintiffs will be counted and a lawsuit will be filed in London against the parent company of Mt. Gox, K. K. Tibanne and the Mt. Gox CEO Mark Karpeles. Howlett stated,

“There are already over 400 people who are joining in … From every country you can think of.”

Under the English law as compared to its counterpart, the United States, the filing of class actions is very uncommon. If Selachii goes ahead with the plan to file the lawsuit, it will be the firm’s first class action. Howlett commented that it was still not clear why the bitcoin exchange collapsed. He continued to state that the lawsuit would primarily focus on the complaints of customers about the lack of disclosure by Mt. Gox. Moreover, it will address customer deposits made right up to the exchange’s collapse. Howlett said,

“On the back of the Mt. Gox collapse a lot of people say they feel the truth is not being stated. There are lots of unanswered questions. Some people have had their life savings disappear.”

This month has been a wild ride for Mt. Gox’s customers and the bitcoin community. If the class action goes through, it can be the solution to many people’s frustrations unlike the one Mt. Gox was never able to give.

More details will be forthcoming, so stay tuned to Coinreport.

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