Mizuho to face US law­suit over Mt Gox bit­coin losses: rul­ing

The Pak Banker - - FRONT PAGE -

US law­suit ac­cus­ing Ja­pan's Mizuho Bank of con­ceal­ing prob­lems at the now-bank­rupt Tokyo-based Mt Gox bit­coin ex­change can move for­ward, a fed­eral judge in Chicago has ruled. US District Judge Gary Fein­er­man re­jected on Mon­day the bank's ar­gu­ment that the case be­longs in Ja­pan, find­ing that the hard­ship to the bank from try­ing the case in the United States would be no more than that "rou­tinely tol­er­ated by courts."

Mizuho pro­vided bank­ing ser­vices for the ex­change and han­dled all de­posits for U.S. cus­tomers. It is part of Mizuho Fi­nan­cial Group Inc (8411.T), one of Ja­pan's largest banks by as­sets.

The pro­posed class ac­tion on be­half of the ex­change's U.S. cus­tomers was filed in Fe­bru­ary 2014, the same month Mt Gox filed for bank­ruptcy af­ter los­ing an es­ti­mated half a bil­lion dol­lars worth of cus­tomers' bit­coin dig­i­tal cur­rency. Once the world's largest ex­change for bit­coins, Mt Gox blamed hack­ers for steal­ing the van­ished cur­rency.

Cus­tomers agreed to set­tle their claims against Mt Gox in April 2014, reach­ing a deal with out­side in­vestors and cred­i­tors to re­ceive a share of re­cov­ered as­sets. Cus­tomers who com­plained about with­drawal de­lays were told by the ex­change that they were due to tech­ni­cal prob­lems, the law­suit said.

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