Mississippi doctors sue over $3,000 bitcoin loss now worth $135 million

Two Mississippi doctors are continuing to pursue a lawsuit against a bankrupt bitcoin exchange for a loss in 2011 that is now worth approximately $135 million, according to CoinDesk.

Dr. Donald Raggio, who works in pediatrics at the University of Mississippi Medical Center, and his son, Chris, filed suit in 2014 against the former owners of Mt. Gox—a now-defunct bitcoin exchange—for a loss of about 9,400 bitcoins (valued around $3,100 at the time of the theft, court filings note) allegedly stolen from their account seven years ago when the cryptocurrency was in its infancy.

The Raggios opened the account in late 2010, according to court documents, depositing $5,000 and doing some initial trading on the site. About $3,100 worth of stolen bitcoins were allegedly removed from the account in January 2011 using the Raggios’ login information.

The Raggios spent the following weeks corresponding via email with Mt. Gox’s then owner, Jed McCaleb, who willingly helped the two try to track down the hacker and recover the loss, even after he sold Mt. Gox to a different owner in February 2011 named Mark Karpeles.

The Raggios continued to communicate with McCaleb, who seemed confident they’d recover the stolen bitcoins, according to email correspondence, but the pursuit appeared to halt in March 2012 when Karpeles allegedly told them he had only purchased Mt. Gox’s assets and not its liabilities.

Bitcoin’s popularity as the world’s first decentralized form of digital currency has steadily risen since its first breaths in 2009, generating unprecedented attention in 2017 when its value skyrocketed. The defendants claim there was no further attempt on the Raggios’ part to recover the lost bitcoins until 2014 when Mt. Gox filed for bankruptcy and the value of their loss had reached approximately $2 million.

More than three years had passed between the alleged theft and the Raggios’ lawsuit—54 days beyond Mississippi’s statute of limitations for many of their claims, the defendants argue, including breach of contract, conversion, negligence and conspiracy. The looming legal question revolves around whether the Raggios’ claim is “time-barred,” as the two claim the statute of limitations “did not begin to run at the time of the theft,” but at a later date when it was officially determined the bitcoins were never recovered.

Any potential damages recovered would be based on the value of the stolen bitcoins at the time of the theft, approximately $0.33 each—not the current value, which as of today is approximately $14,000 per coin.

The defendants are appealing a Hinds County Circuit Court ruling after their motion for summary judgment was denied in November 2017.

News

House, Senate leaders swap Mississippi Medicaid expansion proposals as Monday night deadline nears

News

Police: Mississippi man arrested on felony child abuse charges; mother — who is a juvenile — may also face charges

News

UPDATE: Two people arrested for murder in connection with shooting at Mississippi night club that killed one, injured 4 others

News

Mississippi man arrested after shots fired while vehicle was being repossessed

News

Spring is in the air in Mississippi. So are these increasingly dangerous pests.

News

Two people killed after 350,000 pound load breaks free from trailer lands on nearby car

News

Alabama man dies in crash on rural Mississippi highway Sunday evening

News

Sheriff: One person dead, at least 3 others injured at Mississippi night club shooting Sunday

News

Mississippi city to get its second Chipotle Tuesday — including state’s first ‘Chipotlane’

News

Mississippi woman arrested after reportedly shooting husband multiple times

News

Parents charged in Mississippi baby’s death

News

First cicadas of 2024 in Mississippi documented this week

News

Mississippi Skies: Severe weather chances increase for parts of state as storm system from Midwest approaches

News

Man arrested after reportedly stealing from a Mississippi garden center

News

Detection of Kratom in fatal crash prods Mississippi county leaders to take action against substance

News

Court: Women arrested must pay restitution for damage to Mississippi city hall fountain to avoid harsher consequences

News

One person injured in shooting involving Mississippi deputy

News

Two people arrested, accused of stealing internet cable bringing down service to small Mississippi airport, FAA

News

Mississippi Slumber store gives customers reason to rest easy when it comes to mattress shopping

News

Police release video of two people shooting into Mississippi residence Thursday night

News

Police investigating after man and woman found dead at Mississippi bus stop

News

Mississippi researchers optimistic after discovering possible link between Alzheimer’s and fat-transporting molecule

News

Saber-tooth tiger fossil found in Mississippi creek bed

News

Mississippi couple in their 90s found dead after police respond to home invasion