UK ready for bitcoin class action

Hundreds of people have signalled they would join a class action against Mt. Gox, the world's biggest marketplace for the digital currency bitcoin before its abrupt collapse.

It would be the latest effort to try to recoup some of the £400 million in losses that Mt. Gox has blamed on a hacking attack that drove it into bankruptcy. The exchange is already being sued by a U.S. customer for alleged negligence and fraud.

Claimants will file a suit in London against the parent company of Mt. Gox, K K Tibanne, and Mt. Gox chief Mark Karpeles. Neither Karpeles nor his lawyer were available to comment.

Customers complaint about a lack of disclosure by the exchange and customer deposits made in the immediate run-up to its collapse. On the back of the Mt. Gox collapse a lot of people say they feel the truth is not being stated.

The benefits for claimants are that legal fees will be spread across a big number of people.

At a news conference on Friday at the Tokyo District Court, Karpeles said he was very sorry and blamed Mt. Gox's collapse on a "weakness in our system," but predicted that the bitcoin market would continue to grow.

Bitcoin, unlike conventional money, is bought and sold on a peer-to-peer network independent of central control. Its value has soared in the last year, and the total worth of bitcoins created is now about $7 billion.


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