London Law Firm Sues Bitcoin Exchange MtGox CEO

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A London law firm is suing MtGox CEO Mark Karpeles for damages. On Friday, the bitcoin exchange filed for bankruptcy when it discovered a flaw in their systems that essentially lost more than 850,000 bitcoins.

London based Selachii LLP says it is representing over 200 plaintiffs across 15 countries. Some of the law firm’s clients claim to have lost large sums of the virtual currency.

The Japan based bitcoin exchange MTGox has said very little about the loss and their filing for bankruptcy. Karpeles reiterated that the bitcoins were lost due to a problem in the system. Some have wondered if the bitcoin exchange was in fact hacked.

Karpeles encouraged users to trade on the exchange all throughout the month of February. Some are arguing

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that this action shows the CEO was making fraudulent and illegal actions. MtGox made other questionable moves before declaring bankruptcy. The bitcoin exchange deleted its Twitter account.

Details and photo courtesy of the International Business Times