Mt Gox victim seeks to delay Mizuho lawsuit verdict amid hopes for full compensation
Mt Gox victims and the Mizuho bank have together requested the California federal court to delay a lawsuit filed by Joseph Lack, an ex-customer of Mt Gox, California. Joseph Lack and the Mizuho bank have together filed for a stay in the case as the Mt Gox investors are in hopes of a full compensation for their Bitcoin investments handled by Mt Gox before the crypto exchange shut down. Joseph Lack filed a lawsuit against Mizuho in July 2014 stating that the bank was creating transaction problems for its customers.
The Mt Gox trustee, Nobuaki Kobayashi has been unloading sizeable chunks of recovered bitcoins from the Mt.Gox hack in the market. He has raised over $617 million last month from the Bitcoin sales. Apart from the cash from bitcoin sales the exchange also has over 143000 bitcoins. This amount is thought to be enough to fully compensate for the rehabilitation claims of the Mt. Gox investors.
In the anticipation of a full payment for their bitcoin investments, Joseph Lubin and Mizuho filed for a stay in the case until February 28, 2019. On this day the decision will be made as to whether the investors receive full or partial compensation through the Japanese civil rehabilitation proceeding. The rehabilitation claims period closes on October 22, 2018. These claims will be either approved or rejected by January 24, 2019.
Joseph Lack filed a case against the Mizuho bank after he claimed that he lost his bitcoin deposit to the Mt Gox account hosted by the exchange after the bank refused to process the withdrawal of the deposit. The bank allegedly kept its Mt.Gox account open even after the exchange collapsed accepted all deposits but denied withdrawals to customers.
The crypto hack of the century saw investments worth millions lost to hackers. In the month of May 200,000 of lost bitcoins was discovered in a digital storage which was in use before the hack. Frozen at the time of the legal conundrum and this frozen Bitcoin reserve has climbed in value. The values far exceed the victims' claims for lost investments.
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