Feeds

Bitcoin bust litigants fling sueballs at Japanese bank

Mizuho Bank added to Mt Gox as defendant

The essential guide to IT transformation

A major Japanese bank has now been swept up in the collapse of Bitcoin trader Mt Gox, with Mizuho Bank named as a defendant in one of the many lawsuits cropping up over the collapse.

The bank has been added to a lawsuit against Mt Gox, since by providing services to the former Magic-the-Gathering card trading operation, the complainants say, it “aided in a fraud”.

The lawsuit was brought by Illinois resident Gregory Greene, as El Reg reported early this month, on the basis that the organisation “intentionally and knowingly failed to provide its users with the level of security protection for which they paid”.

Greene's complaint against Mizuho Bank is that it held “non-Bitcoin” currency – that is, government nominated currencies like dollars and yen – on behalf of Mt Gox. He accuses Mizuho of being aware of fraud, of not protecting customer funds by segregating them from Mt Gox's own holdings, and for making Mt Gox's customers' losses worse by continuing to provide services when the exchange was in trouble.

The key reason for adding the bank to the lawsuit is that Mt Gox is currently under bankruptcy protection in the US.

Greene isn't the only one to slip the bank into the cross-hairs: according to CBC News, Mizuho, along with Mt Gox, is a defendant in an action filed in Ontario on Friday March 14.

The Financial Post says the Canadian filing seeks to launch a $US500 million lawsuit against Mt Gox, its owners Mark Karpeles and Jed McCaleb, along with Mizuho Bank. ®

The essential guide to IT transformation

More from The Register

next story
Britain's housing crisis: What are we going to do about it?
Rent control: Better than bombs at destroying housing
GCHQ protesters stick it to British spooks ... by drinking urine
Activists told NOT to snap pics of staff at the concrete doughnut
Top beak: UK privacy law may be reconsidered because of social media
Rise of Twitter etc creates 'enormous challenges'
What do you mean, I have to POST a PHYSICAL CHEQUE to get my gun licence?
Stop bitching about firearms fees - we need computerisation
Ex US cybersecurity czar guilty in child sex abuse website case
Health and Human Services IT security chief headed online to share vile images
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
Oz biz regulator discovers shared servers in EPIC FACEPALM
'Not aware' that one IP can hold more than one Website
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.