Judge Robert Kelly has denied the request of crypto exchange Mt. Gox CEO Mark Karpeles to dismiss the class-action suit filed against him in the U.S.

According to reports, Karpeles, the former head of the now-defunct Mt. Gox, made an appeal to dismiss a lawsuit filed against him. The suit alleged that Karpeles hid from users the problems the exchange platform was experiencing by explaining the Philadelphia court didn’t have jurisdiction.

Charge by Gregory Pearce

One alleged court document of the recent ruling showed that the charges was started by Gregory Pearce, a former user of Mt. Gox, and filed on behalf of other users who were affected by the crypto exchange.

Pearce has charged Karpeles with one count each of fraud and negligence. He claimed that the ex-CEO, as the “sole controlling force,” knew there were security bugs in Mt. Gox’s system but he didn’t say anything about the defects to users.

The lawsuit was initially filed in 2018 against the Mizuho Bank, the crypto exchange platform’s banking partner. However, the court ruled it didn’t have any jurisdiction over the institution.

Not The First Lawsuit

This isn’t the first lawsuit Karpeles has faced after Mt. Gox’s fall. A similar class lawsuit was filed against him in 2016 but the case was dismissed.

Mt. Gox continues to remain in the limelight despite shutting down. Back in April, a trustee of the exchange extended the deadline for users to submit their rehabilitation plans.

Rumors also abounded at the time of how users who have Bitcoin (BTC) on Mt. Gox’s platform and who had specific self-admission rehab claims registered for them can get some of their money back.

