Mark Karpeles refuses to testify on the MtGox scandal until he has acquired legal counsel sufficient to represent him.
Mark Karpeles, former CEO of the bankrupt Japanese Bitcoin exchange MtGox, has refused to return to the US amidst a lawsuit and potential fraud charges. Karpeles has been summoned to a hearing in Washington DC this Friday to give details on the company’s alleged “losing” of roughly $500 million in Bitcoins this past March. Bitcoin is used in a variety of internet industries, including online and mobile casinos.
The disgraced executive, who was born in France but is a US citizen, is being sued by Gregory Greene, a former MtGox customer who lost a large sum of money in the bankruptcy. Karpeles maintains that the Bitcoins were stolen by hackers, while Greene and others claim that the CEO moved them into accounts under his personal control. Karpeles has indicated openness to returning to the US once he has acquired legal counsel.
Despite turbulence, Bitcoin still popular
Despite the scandal surrounding the bankruptcies of MtGox and Flexcoin, Bitcoin is still accepted by online casinos in Britain
like Zynga, Bet365 and Bitstars. It is also accepted by non-gambling firms like Virgin Galactic and Overstock.
However, the exchange rate has been volatile, falling from $1,200 per coin in December 2013 to roughly $456 currently. American hedge fund manager Warren Buffet advises against investment in the virtual currency.