U.S. District Judge Gary Feinerman has reportedly frozen the U.S.-based assets of Mt. Gox CEO Mark Karpeles and companies related to him for two weeks as clients of the former exchange look to get back at least some of what was in their accounts before the company shut down.
Feinerman is said to have placed a temporary restraining order on Karpeles’ assets, that of a related company in the U.S., and the parent company of the exchange’s operator, according to the Wall Street Journal. The WSJ reported indicates that the firm that ran the exchange, Tibanne, is not affected by the order due to bankruptcy hearings.
The asset freeze comes in response to a lawsuit filed by former clients in Chicago currently seeking class-action status, and attorneys are suggesting that Karpeles has been moving money claimed to have been lost.
“Every day we wait, our view is there will be less and less money,” Jay Edelson, an attorney, said.
Not surprisingly, Karpeles nor an attorney representing him appeared in court. Though a law firm representing the company was present (and declined to make comment).
The asset freeze targets the company’s bank accounts and servers that are suspected to be located in Massachusetts, though the Judge said that “It may turn out there are no such assets.”
Mt. Gox filed for bankruptcy protect last month in Tokyo, Japan, and claims to have lost upwards of 700,000 BTC of customer funds and 100,000 BTC of their own.
Read the full report by the Wall Street Journal here.