The former CEO of ex-cryptocurrency exchange Mt. Gox, Mark Karpeles, plans to finally put a stop to the litigation process started by a previous exchange user in 2014. The reason behind this is Karpeles’ recent claim, sent to the Chicago federal court on Jan. 8, which stated that he should receive a summary judgment as the main plaintiff.
The claim is based on the fact that Gregory Greene has already admitted that his initial statements were false and supported by no official data. According to U.S. law, summary judgments are awarded by the court in the name of one party against the other. If awarded, there will be no full trial. They are usually requested by individuals who think that there are no contested facts nor issues and are therefore entitled to summary judgment.
The lawyers representing Mark Karpeles stated in their filing:
“After the resolution of the claims against the other defendants in mid-2018, rather than withdrawing claims based on allegations that Mr. Greene readily admitted in subsequent discovery were not true or unsupported, Mr. Greene doggedly pursued these claims. The time has come to end this litigation in its entirety.”
The case behind Mt. Gox
Mt. Gox previously represented the largest exchange in the cryptocurrency sector. Established and founded in 2010 by Jed McCaleb, who later on sold the exchange to Mark Karpeles, Mt. Gox collapsed in 2014. Before its fall, the exchange processed more than 70% of all bitcoin transactions.
Collapsing as a result of bankruptcy and other issues, Mt. Gox makes one of the most controversial cases in crypto history. At the moment, the former CEO requested a summary judgment based on three counts: consumer fraud, conversion, and negligence.
In the past, Karpeles pleaded not guilty in December 2019 on the charges of embezzling around $3 million from the former crypto exchange and manipulating its ledgers to promote an inflated cash balance. While the court cleared his embezzlement charges, it charged Karpeles as guilty in the case of modifying financial records.