Assuming for the moment that they are doing that - is it really criminal activity? I understand that it would be in regulated markets, but Bitcoin isn't regulated.
It doesn't matter what they deal with. MtGox is a financial services provider registered with the Japanese FSA that transmits money in multiple "recognised" currencies (AUD CAD CHF CNY DKK EUR GBP HKD JPY NOK NZD PLN RUB SEK SGD THB USD).
They are subject to Japanese law and International law. And also to US and EU law regarding AML/KYC of their citizens.
Bitcoin might not be regulated in most places to different degrees, but that doesn't mean you are above the law because you deal with Bitcoin among other things.
>>They are subject to Japanese law and International law. And also to US and EU law regarding AML/KYC of their citizens.
Is there any legal precedent for this? What would you sue Mt.Gox for? Do they have contracts or some form of binding agreement with people who store their BTC with them?
I'm not sure they're really bound by any laws in regards to currency. Maybe contractually, but beyond that, not sure what you could sue them for without some real concrete evidence of criminal activity.
You typically sue a company over torts, not crimes. A tort is a civil cause of action. "They deprived me of my property in a fashion we had not agreed upon" is a tort called conversion. There exist many other ones you could describe Mt. Gox as having committed. Japan and the US are friendly first-world nations; their courts routinely enforce each others' judgments. (You'd have to demonstrate tortious behavior in the US to the satisfaction of a Japanese court, which might not be straightforward, but that's the sort of thing you'd want to ask an actual Japanese lawyer rather than somebody with a cursory understanding of the matter.)
That said, most people hoping for recourse in a court of law do not understand the expense, timeline, and likelihood of actual collection involved. (Six figures, years, and "probably nil", respectively.)
MtGox isn't exactly FDIC(or whatever Japan's equiv) insured. What are you going to sue for? Who told you it was okay to buy these digital coins? I love Bitcoin, but I'm not denying the fact that it's essentially gambling[1] and I accept full personal responsibility for losing my own funds. Trusting any of these unregulated exchanges is part of the gamble. If the law did try to say MtGox has liability, I wonder how that'd effect the other exchanges out there.
1. Actually, it's worse than gambling since I don't think "legit" Casinos can legally just disappear over night causing you to lose funds that you haven't even gambled with yet. There is absolutely zero protection in the wild-west of bitcoin right now.
