Two traders sued the founder of MtGox for failing to secure the exchange

The founder of MtGox, Jed McCaleb, was sued by two users of a closed exchange. It is assumed that McCaleb knew about the security problems of the site long before its collapse.

According to court documents that were filed back in May of this year, but made public only now, Joseph Jones and Peter Steinmetz are accusing the former CEO of MtGox of fraudulent and falsely positioning the stock exchange.

The plaintiffs also claim that McCaleb was aware of “serious security threats” as early as late 2010 or early 2011 - more than three years before the shortage of 850,000 BTC, allegedly stolen as a result of a hack, was discovered. Their complaint states:

“Instead of ensuring the security of the exchange, McCaleb sold most of his share and provided opportunities for purchases to hide security problems at the time, never informing or disclosing these problems to the public.”

Both plaintiffs call themselves experienced cryptocurrency traders. They said that McCaleb assured them of the security of the stock exchange after a “word attack” in 2011, when the fraudster stole coins after an attack on accounts with weak passwords. The court document alleges that 80,000 BTC were already absent at that time, and that McCaleb sold most of his stake in MtGox to Mark Carpeles instead of dealing with security issues.

Jones said that he owned 1,900 BTC at the time of the collapse of MtGox (about $ 24 million at the moment), and Steinmetz said that he owned 43,000 BTC (more than $ 542 million). Both claimants hope for compensation and say they would not use MtGox if they knew about the “significant security issues” that existed in 2011.

In April, it was reported that trustee MtGox Nobuaki Kobayashi postponed the approval of the exchange rehabilitation plan. Now the deadline for submitting it is October 28 of this year.
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