MT. Gox the worlds largest bitcoin exchange has been sued!

Guys its what ive been saying since day 1. Bitcoin is a house of cards, a ponzi scheme. Now I will be the first to admit that I am a hard core litecoin miner. But I remember a few simple rules:

1. DONT EVER BUY PROPRIETERY BITCOIN MINING HARDWARE. BUY GRAPHICS CARDS!! That way, when this thing crashes and burns, and it will, youll have something in your hand worth value to sell!

2.  DONT INVEST YOUR OWN MONEY, MINE ONLY!!

3. DONT STACK TOO MUCH MONEY IN YOUR WALLET, IF YOUR WALLET HAS “TOO MUCH TO LOSE” IN IT , CASH OUT!

4. YOU KNOW IT WILL CRASH AND BURN, I JUST OLD YOU,USE COMMON SENSE, BE EXTRA CAUTIOUS!

5. IN EVERY PONZI SCHEME, THERE WILL BE THOSE THAT MAKE MAD FAT STAX, AND THOSE THAT LOSE EVERYTHING. THERE IS NO IN BETWEEN! WHICH ONE WILL YOU BE?

Here is the article:

Mt. Gox, ┬áthe world’s largest bitcoin exchange, has been sued by way of a customer in what will be the first of many U. S. lawsuits seeking to recoup huge amount of money of losses linked to a hacking attack that resulted in the exchange’s bankruptcy.

In a complaint filed on Thursday in U. S. District Court in Chicago, plaintiff Gregory Greene said Mt. Gox and its leader, Mark Karpeles, were negligent and committed fraud for having failed to protect the Tokyo-based exchange from theft.

Greene said bitcoin prices plummeted after Mt. Gox found the security breach, but said that he along with other investors in the virtual currency could maybe not cut their losses because the exchange had halted trading. Mt. Gox took down its web site on Tuesday.

“Mt. Gox intentionally and knowingly didn’t provide its users with the level of security protection that they paid, ” said Greene, who estimated his bitcoin stake at $25, 000.

The lawsuit seeks class action status with respect to Mt. Gox users, restitution, monetary damages and other counteractants.

It was not immediately clear which law firm would defend Mt. Gox against the lawsuit. Baker & McKenzie, a Chicago-based firm that represents the exchange in Japan, did not instantly respond on Friday to requests for comment.

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 keep on to grow.

Mt. Gox said it may have 750, 000 of its customers’ bitcoins and 100, 000 of its own, equal to about 7 percent of bitcoins global, for a total lack of about $480 million.

The exchange reported having 127, 000 creditors, liabilities of 6. 5 billion yen ($64 million) and assets of 3. 84 billion yen ($38 million).

It’s quite common for alleged frauds that generate significant losses or attention to result in a slew of U. S. lawsuits seeking class action status, even though the alleged wrongful activity does occur outside the country.

“This is a case of serial mismanagement, if maybe not outright fraud, by Karpeles and Mt. Gox, ” said Steven Woodrow, a partner at the Edelson law firm in Denver, who filed Greene’s lawsuit. “Users of the exchange are collectively out millions while Mt. Gox holds onto their bitcoins. We intend to get to the bottom of the in an American court. ”

The case is Greene v. MtGox Inc, U. S. District Court, Northern District of Illinois, Number 14-01437.