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Mt.Gox Demise Leads To Legal Suits Against Japan’s Mizuho Bank

The fallout from the demise of one of the biggest Bitcoin exchanges MT. Gox continues. As we reported the company admitted to serious security lapses which resulted in almost all the 750,000 customer Bitcoins as well as 100,000 of their own going missing, All in all about $500 million in Bitcoin has disappeared. What exactly happened to them is still unclear Mt. Gox is being accused of everything from massive fraud to criminal negligence.

With such huge amounts of cash unaccounted for, investors are looking for heads to roll. The latest head on the chopping block is that of Mizuho Bank which one of Japan’s largest lenders .They have been added as a defendant on Friday to an existing U.S. lawsuit against Mt. Gox. The charges include aiding in fraud by providing banking services to the now notorious Bitcoin exchange.

If the U.S. front is not enough, Mizuho Bank were also named in a class-action lawsuit in Canada where they are charged with security breaches that led to “the pilfering of millions of dollars” in Bitcoins. Efforts to get a response to the charges from Mizuho today were unsuccessful as they declined to comment. Mizuho reportedly held non-Bitcoin currency on behalf of Mt.Gox and their customers. The U.S. suit further alleges that Mizuho knowingly profited from the fraud by not separating the funds from Mt.Gox and those of its customers.

There are further damaging reports which include a recording which was leaked on the internet in where a Mizuho manger “requests” that Mt. Gox CEO Mark Karpels close their account with the ban due to compliance issues. He warned of serious damage to Mt. Gox should Mizuho have to forcibly close the account. We will follow the legal battle and how it affects Bitcoin as a whole with interest.

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