👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

Mt. Gox CEO won't appear in U.S. for questions about bankruptcy case

Published 18/04/2014, 23:51

By Devika Krishna Kumar

(Reuters) - Mark Karpeles, the chief executive of Mt. Gox, said he would not come to the United States to answer questions about the Japanese bitcoin exchange's U.S. bankruptcy case, Mt. Gox lawyers told a federal judge on Monday.

In the court filing, Mt. Gox lawyers cited a subpoena from the U.S. Department of Treasury's Financial Crimes Enforcement Network, which has closely monitored virtual currencies like bitcoin.

"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.

The subpoena requires Karpeles to appear and provide estimony in Washington, D.C., on Friday.

The court papers also said a Japanese court had been informed of the issue and that a hearing was scheduled on Tuesday in Japan.

Bitcoin is a digital currency that, unlike conventional money, is bought and sold on a peer-to-peer network independent of central control. Its value has soared in the last year, and the total worth of bit coins minted is now about $7 billion.

Mt. Gox, once the world's biggest bitcoin exchange, filed for bankruptcy protection in Japan last month, saying it may have lost nearly half a billion dollars worth of the virtual coins due to hacking into its computer system.

According to Monday's court filings, the subpoena did not specify topics for discussion.

In the court filings, Karpelès' lawyers asked the court to delay the bankruptcy deposition to May 5, 2014 but said that Mt. Gox could not guarantee that Karpeles would attend that either.

The case was in Re: Mt Gox Co Ltd in the U.S. bankruptcy court for the northern district of Texas, Dallas division, No. 14-31229-sgj15.

(This story corrects headline and first paragraph to show the Karpeles is the chief executive of Mt. Gox, not the founder)

(Reporting by Devika Krishna Kumar in Bangalore; Editing by; Eric Walsh)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.