Mt. Gox civil rehabilitation proceedings may halt US lawsuit against Mizuho Bank

04 Oct, 2018
by Richard Allen
News
Mt. Gox civil rehabilitation proceedings may halt US lawsuit against Mizuho Bank

Mizuho Bank, a Japanese Corporate Bank, and Joseph Lack, a Mt. Gox customer filed a Joint Report with the California Central District Court to withhold the case against the financial institution, AMBCrypto reports.

Joseph Lack allegedly deposited 440,000 into Mizuho’s bank account with the intention of it being transferred into his Mt. Gox account. However, the exchange went offline before the process was completed and Lack lost all his money.

Lack filed a case against former Mt. Gox CEO Mark Karpelès and Mizuho Bank, stating that it was the responsibility of Mizuho to report the information to him and other customers. Lack also accused Mizuho of deliberately deceiving him by withholding the knowledge that the bank was no longer accepting withdrawal requests.

According to the report, the civil rehabilitation proceedings in Japan have a significant impact on the claims established in the US case. The rehabilitation trustee concluded that mt/ Gox has enough assets to pay back the victims of the Bitcoin theft.

Mt. Gox has reportedly sold a sum of its Bitcoin. The ill-fated exchange has remaining cash assets of over $617 million and 143,000 Bitcoin. Documents released by the trustee state that the rehabilitation claims would close on October 22, and set to be approved by January 24, 2019. Both parties involved in the case recommend that the charges filed against Mizuho bank be withheld until February 28, 2019.

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