Feeds

MtGox chief Karpelès refuses to come to US for g-men's grilling

Bitcoin baron says he needs another lawyer for FinCEN chat

Boost IT visibility and business value

Mark Karpelès, the founder of imploded Bitcoin exchange MtGox, says he won't come to the US to answer officials' questions after his trading website mislaid 850,000 BTC.

Lawyers for MtGox said Karpelès had received a subpoena from the US Department of Treasury's Financial Crimes Enforcement Network (FinCEN) to come to a deposition in Washington on Friday, 18 April – the day after he's due to give evidence in Dallas, Texas, for his bankruptcy protection case.

Japan-based Karpelès filed for bankruptcy protection in America in February after admitting his firm MtGox, once the world’s biggest Bitcoin exchange, had “lost” 750,000 of its customers’ BTC and 100,000 of its own “due to weaknesses in the system”. Altogether, that "lost" Bitcoin pile is worth $429m or £256m at today's exchange rates.

In paperwork submitted to the Texan bankruptcy court and seen by The Register this week, Karpelès said he needed more time to put together a legal defense team for the showdown with FinCEN, and until then he will not travel to the United States.

Karpelès was earlier ordered by a judge to jet into the Lone Star State and give evidence at his bankruptcy protection hearing, but his legal eagles handling that case still hope to postpone that to 5 May, or successfully argue that he shouldn't have to set foot on Uncle Sam's soil.

According to his lawyers, MtGox boss received the FinCEN subpoena through his civil litigation counsel, who is tackling a lawsuit brought by angry out-of-pocket MtGox users in Chicago. The criminal enforcement organisation had not specified what exactly it wants to talk to him about.

Meanwhile, the exchange told a bankruptcy court in Tokyo that it has debts of about $63.8m (£38m). The virtual coin firm hopes to be awarded protection in both Japan and the US from its creditors. ®

Build a business case: developing custom apps

More from The Register

next story
The police are WRONG: Watching YouTube videos is NOT illegal
And our man Corfield is pretty bloody cross about it
China hopes home-grown OS will oust Microsoft
Doesn't much like Apple or Google, either
UK government accused of hiding TRUTH about Universal Credit fiasco
'Reset rating keeps secrets on one-dole-to-rule-them-all plan', say MPs
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Don't even THINK about copyright violation, says Indian state
Pre-emptive arrest for pirates in Karnataka
Yes, but what are your plans if a DRAGON attacks?
Local UK gov outs most ridiculous FoI requests...
prev story

Whitepapers

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.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?