Judge rejects class certification in $400M Mt Gox fraud lawsuit

A federal judge has rejected a bid for class certification from clients of the defunct Japanese Bitcoin exchange Mt. Gox, which was forced into bankruptcy in 2014 following a major hack.

Judge Gary Feinerman made the declaration in the U.S. District Court for the Northern District of Illinois on Tuesday, June 22 saying it would require 30,000 “mini-trials” to find otherwise.

The move handed a victory to former Mt. Gox CEO Mark Karpeles, who has argued that a compensation plan in Japan would serve better than litigation in the United States.

Before a class action lawsuit can proceed, the class must be certified which ensures that the plaintiffs have enough similarities to proceed with litigation against the defendant as part of one larger case.

The judge reasoned that the lead plaintiff’s theory about fraud in the $400 million suit turned on Karpeles’ drafting and dissemination of the Mt. Gox terms of use and alleged misinterpretations, according to Law 360.

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Greene originally opened an account with Mt. Gox in early 2012, and claimed to have relied on representations made in

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