Judge Dismisses Mt Gox Class Action Lawsuit in Canada

An effort to bring a class action lawsuit against defunct bitcoin exchange Mt Gox has been dismissed in Canada, according to a notice posted by Charney Lawyers PC today.

Launched in 2014, the class action sought to recover damages plaintiffs lost in the exchange’s collapse, an effort that continues in the US. Now, the Ontario Superior Court of Justice has ruled that claims against Mt Gox Inc, Mt. Gox KK, Tibanne KK, Mt Gox North America Inc, Mizuho Bank as well as Mt Gox CEO Mark Karpeles and founder Jed Mccaleb will not proceed.

Sources close to the lawsuit report that the bid proved unsuccessful due to Mt Gox’s bankruptcy filing in Japan, which was honored by domestic courts last year.

An effort was launched following the decision to keep the lawsuit alive, however, that will officially end on 17th June when the action will be formally dismissed.

Plaintiffs seeking restitution from the exchange are now free to mount individual lawsuits against parties involved in the class action, subject to limitation periods on such actions that bar lawsuits from commencing after a certain length of time following the inciting incident.

In Ontario, where the lawsuit was launched, plaintiffs, for example, have two years to file a lawsuit in attempt to receive restitution.

Mt Gox collapsed in February 2014, losing a reported 744,400 BTC, a sum of assets that was then valued at $350m.

Representatives from Charney Lawyers PC were unable to provide comment at press time.

Gavel image via Shutterstock