Karpeles Facing Fraud Suit Once Again

David Kemp

Law enforcement officers do not seem to be prepared to give up on arresting scammers and fraudsters. These organizations have always been trying to protect the crypto community from criminals and make the entire system much safer. Unfortunately, even though the authorities are doing all possible to protect participants, we see that new cases of illicit activities occur now and then.

Not only do new suits appear. The mass media outlets keep reporting about the fraud suits that suspects had to face six years ago. One of those people is Mark Karpeles. The man has recently received an order from the judge – he will soon have to face the fraud suit he had in 2014.

The order comes from a U.S. District judge. The official representative has dismissed the accused man’s summary judgment request. As the crypto industry still remembers, Mark used to be the Mt. Gox CEO. Unfortunately, running any business is a challenging task and managers account for each step they make. Participants get punished for suspicious activities and illegal practices. Six years ago the government accused Mark Karpeles of fraudulent misrepresentation.

According to the press, the judge had to rule Mark Karpeles and make him face a lawsuit the court filed six years ago. In 2014 Karpeles was still working as a major representative of Mt. Gox, the cryptocurrency exchange that was suspected of illicit operations and fraud.

A few days ago, Gary Feinerman, the U.S. District Judge supervising the lawsuit decided it appropriate to reject the CEO’s motion for summary judgment. Previously, the accused businessman asserted that Gregory Green was willing to alter and change his accusations against Karpeles. According to the information sources, Gregory Green is the lawsuit’s sole remaining plaintiff. Additionally, Green brought new evidence and proof and is prepared to present allegations he didn’t have six years ago. His decision was rather unexpected and it seems that Green expects the law enforcement to help him resolve his issues.

Argument and Discussion

As news reports note the newly discovered details may change the course of the suit. It brings more light and understanding of what happened in 2014. Sometimes it is possible to alter the factual basis and the claim on the summary judgment will still be accepted and valid. This procedure does not violate the law and this allowed Green to address the authorities.

Six years ago Green registered an account on the platform. He submitted to the terms and conditions set on the exchange and started depositing. The platform didn’t allow him to tick a field where the user agrees with the rules. This feature is essential when opening an account since it guarantees the individual’s safety and security. If the user realizes that the platform won’t let him ‘remember’ the conditions applied by the exchange, it means that his funds are not safe. Traders and sellers must not trust such services and should look for better alternatives where they would be able to trade safely. Participants need to be sure that the exchange can guarantee prompt procedures and payment processes related to selling and buying various assets.

Later on, the plaintiff found out that the exchange ignored the law and never had any terms describing the quality of services or the level of security. However, Green signed up, opened a new account, and started his activity. Now the man accuses the former CEO and claims that the platform made him lose over forty-two Bitcoin. He also experienced serious issues related to withdrawals.