Japanese Bank Mizuho added as defendant in MtGox lawsuits

Japanese Bank Mizuho added as defendant in MtGox lawsuits

U.S. lawsuits against now-defunct Bitcoin exchange, MtGox has added one of Japan’s three largest banks, Mizuho Bank Ltd as a defendant. The suit accused MtGox for defrauding customers and Mizuho has aided by providing banking services and allowing the troubled exchange to continue defrauding its customers.

MtGox has lost more than $400 million worth of Bitcoins belonging to the customers due to security breach. There are still no news on what really happened to MtGox’s Bitcoins, whether it has been stolen, lost or temporarily unavailable.

“We’re never going to find out what’s going on unless we start a lawsuit because it’s the only way we’re going to get access to the records,” said Toronto litigation lawyer Ted Charney. “It’s really the only way to get the thing going.”

The amended U.S. suit targets the exchange, MtGox CEO, Mark Karpeles, and one of the largest banks in Japan, Mizuho Bank Ltd., accuses the company was negligent, breached contract, and acted under fraudulent misrepresentation.

Bankruptcy proceedings prevent further actions against MtGox in Japan. But it does not protect its Japanese parent company Tibanne, CEO Mark Karpeles and MtGox’s U.S. subsidiary.