Judge rules Mizuho Bank to face MtGox class action lawsuit in US

Crime | March 16, 2016 By:

U.S. District Judge Gary Feinerman has rejected a claim by Mizuho Bank that a class action lawsuit related to its relationship with failed bitcoin exchange Mt Gox should be moved to Japan.

The proposed class action on behalf of the exchange’s U.S. customers was filed in February 2014, the same month Mt Gox filed for bankruptcy after losing an estimated half a billion dollars worth of customers’ bitcoin. Once the world’s largest exchange for bitcoin, Mt Gox blamed hackers for stealing the vanished currency.

“Mizuho’s qualms about handling Mt. Gox’s business did not extend, however, to receiving fiat currency from Mt. Gox users for deposit into the Mt. Gox account. Even as it limited and then barred withdrawals, Mizuho continued to accept deposits from Mt Gox users, earning revenue from the associated service fees,” said Feinerman.

Customers who complained about withdrawal delays were told by the exchange that they were due to technical problems. Although Mizuho knew these statements were false, it “stood silent while allowing the public to continue being duped.

Mizuho Financial Group is a banking holding company headquartered in the Ōtemachi district of Chiyoda, Tokyo, Japan.