Karpeles and the now bankrupt bitcoin exchange are currently being sued for consumer fraud after Mt. Gox announced it could not account for several hundred thousand customers bitcoins. One of Karpeles’ law firms is submitting papers asking U.S. District Judge Gary Feinerman to admit that his court has no jurisdiction over Karpeles or Mt. Gox. Karpeles lives in Japan, has never been to the United States, and according to his attorney, was not correctly served the complaint that launched the lawsuit.