Traders to File Lawsuit Against Mt Gox Founder

The well-known exchange was founded in 2007 by Jeb McCaleb (who is now blamed by traders of security problems hiding), and it was sold to Mark Karpenes in 2011
27 June 2019   1023

Two former traders of the bankrupt bitcoin exchange Mt. Gox filed a lawsuit against Jed McCaleb, accusing him of fraudulent and deliberate distortion of facts and concealment of information, which partially resulted in the loss of funds during the platform hacking in 2014. It is reported by CoinDesk.

The lawsuit was filed on May 19 in the California Supreme Court on behalf of Joseph Jones and Peter Steinmetz. In it, they claim that security problems on Mt. Gox was present back in January 2011, when, as a result of two hacks, the exchange lost “thousands of a Mt. Gox user’s bitcoin”.

At the same time, according to documents, McCaleb was well aware of what had happened, but he did not report it to the general public, having subsequently sold the stock exchange to Mark Carpeles.

The plaintiffs insist that McCaleb deliberately concealed existing security problems, while continuing to position Mt. Gox as a reliable platform with high liquidity.

In this regard, they, in addition to compensating for their losses, demand that fines be imposed on McCaleb.

The idea that I was somehow to blame for the demise of Mt. Gox, three whole years after I had anything to do with the site, is completely ridiculous. The amount missing when Mark took over was relatively minor and he was fully aware of it. Mark ran the site into the ground. He managed to have 100s of thousands of bitcoins stolen from him without ever even checking his wallet balance. He was clearly totally incompetent and this is why the site went bankrupt not because of anything else. This is why these people lost their money. The suit is frivolous and just a money grab by unscrupulous people.
 

Jed McCaleb

Founder, Mt Gox

According to the documents, Jones was holding 1,900 BTC on the exchange at the time of her bankruptcy, while Steinmetz indicated an amount of 43,000 BTC. Plaintiffs argue that they would not use Mt. Gox, if they had timely learned about the problems of the platform.

Once the largest Bitcoin exchange Mt. Gox crashed in early 2014. This happened after the information appeared about its alleged hacking and theft of 800,000 BTC ($ 480 million at that time). In December last year, Carpeles, during his closing speech at a Tokyo court, called himself innocent of the events that caused the millions of client losses and the company's collapse.

In April, the Tokyo District Court approved the petition of the trustee Mt. Gox Nobuaki Kobayashi to extend the consideration of creditors' applications for compensation and postponed the filing of the final civil rehabilitation plan until October 28

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   333

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.

 

Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.