Mt. Gox’s Mark Karpeles Found Guilty Over Data Manipulation in Tokyo Court

March 15, 2019
53 Views

Mark Karpeles, former CEO of the long-defunct bitcoin exchange Mt. Gox, has escaped some charges, but been found guilty of manipulating exchange data in a Japanese court.

According to a report from The Wall Street Journal on Friday, the Tokyo District Court found Karpeles guilty of wrongfully making electronic records connected to Mt. Gox’s books, but innocent on charges of embezzlement and breach of trust.

Karpeles was handed a suspended sentence of two years and six months. He must maintain a good record over the next four years to avoid jail time.

The court’s verdict comes almost five years after Mt. Gox filed for liquidation in April 2014 after claiming it was hacked for 850,000 bitcoin, some of which was later found.

According to the WSJ report, Karpeles’ lawyers wrote in their final argument to the court:

“Mt. Gox did not collapse because of the defendant’s [Karpeles’] wrongdoing. On the contrary, the defendant was trying his hardest every day to prevent its collapse.”

In December, Japanese prosecutors were seeking a 10-year sentence for Karpeles for embezzlement, alleging he used about $3 million of customers’ funds for his own personal use.

Karpeles, on the other hand, reiterated his innocence and apologized several times over the years. He once said, “I never imagined things would end this way and I am forever sorry for everything that’s taken place and all the effect it had on everyone involved.”

In August last year, the Japanese bankruptcy court that initially oversaw the case sided with creditors who made a petition to move the case to civic rehabilitation. As such, creditors could file for receiving their bitcoin locked up at Mt.Gox in their original form rather than having them converted to fiat currencies.

In January, Mt.Gox’ trustee Nobuaki Kobayashi announced the deadline for creditors to file proof of their claims was extended to March 15, after which the trustee will submit the rehabilitation plan to the court.

Mark Karpeles image via CoinDesk archives 

https://www.coindesk.com/mt-goxs-mark-karpeles-found-guilty-given-2-6-year-suspended-sentence

You may be interested

I Underestimated Just How Many Subpoenas I Would Get
Crypto News
15 views
Crypto News
15 views

I Underestimated Just How Many Subpoenas I Would Get

btcethereumadmin - May 19, 2019

Steve Beauregard of the Bloq talks about his favorite work: answering subpoenas. Subscribe to CoinDesk on YouTube: http://www.youtube.com/subscription_c... Site: https://www.coindesk.comFacebook:…

Inflation Bug Still a Danger to More Than Half of All Bitcoin Full Nodes
Bitcoin
38 views
Bitcoin
38 views

Inflation Bug Still a Danger to More Than Half of All Bitcoin Full Nodes

btcethereumadmin - May 19, 2019

Eight months after the discovery of the inflation bug, more than half of the full nodes on the bitcoin network…

Markets Update: Bitcoin Cash Jumps Ahead as Crypto Prices See Fresh Gains
Crypto News
19 views
Crypto News
19 views

Markets Update: Bitcoin Cash Jumps Ahead as Crypto Prices See Fresh Gains

btcethereumadmin - May 19, 2019

Digital asset markets jumped in value over the last 24 hours as most cryptocurrencies have gained 8-13%. Since our last…

Leave a Comment

Your email address will not be published.