Former Users Sue Mt.Gox for the Loss of 9500 BTC

Two doctors from Mississippi sued cryptocurrency exchange closed in 2014 aiming to return their 9 500 BTC. Today this amount worth as much as around $133 million. The cryptocurrency was stolen, however, this was not connected with the exchange bankruptcy and happened way before that. The lawsuit was first brought on May 5th, 2014. Dr. Donald Raggio together with his son Chris Raggio sued several entities and individuals, including Jed McCaleb and Mark Karpeles. These two were Mt.Gox former owners. The defendants filed a motion for summary judgment, but the court denied it on November 16th, 2017. They appealed the decision last month.

According to the court document, Donald Raggio registered at MtGox exchange in December, 2010. At that time bitcoin rate was even less than a dollar. The correspondence between Donald Raggio and McCaleb showed that somebody had stolen 9 500 bitcoins from Donald`s account. This happened in January, 2011.

Later, in 2011 McCaleb sold Mt.Gox and Karpeles became a new owner of the virtual currency exchange. He then claimed that he had only received Mt.Gox assets but not liabilities from his predecessor. Anyway, when MtGox went into bankruptcy in 2014, Donald and Chris Raggio finally decided to sue the company.

The defendants argued that the case should be time-barred due to the statute of limitations in Mississippi, because it was filed three years and 54 days after the loss.

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