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   1002

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

Bitfinex to Introduce Sub-Account Feature

This system was launched after users' requests and it gives them an ability to experiment with several trading strategies simultaneously
21 January 2020   102

The Bitfinex cryptocurrency exchange has announced a new feature that allows users to create multiple sub-accounts under one master account.

As the technical director of the company Paolo Ardoino noted, the introduction of this option occurred almost at an ideal time, taking into account the growing interest in cryptocurrencies from institutional investors.

The Bitfinex blog says that the sub-account system has been introduced at the request of many users.

According to the proposed scheme, users will be able to experiment with several trading strategies at the same time, while Bitfinex will use the combined trading volume for all related accounts, offering general discounts on commission according to the structure of calculating commissions.

If the user account is verified, the client can choose which sub-account will use this data, giving it all the relevant advantages. In addition, each sub-account can be verified individually.

Users will also be able to send funds from the master account to the wallets of their chosen sub-account.

When creating a sub-account, it is tied to the main user account, which will continue to act as a master account. Only the master account has the authority to create sub-accounts (up to 100), it is also endowed with a number of other functions, including changing the viewing mode, changing e-mail, etc.