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

March 15, 2019
30 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

Japan to Tighten Rules on Cryptocurrency Margin Trading
Crypto News
13 views
Crypto News
13 views

Japan to Tighten Rules on Cryptocurrency Margin Trading

btcethereumadmin - March 19, 2019

Japan is putting in place new, stricter rules for cryptocurrency margin trading from next year. According to a report from…

Galaxy Digital Backs $5.25 Million Round for Blockchain Staking Startup
Crypto News
13 views
Crypto News
13 views

Galaxy Digital Backs $5.25 Million Round for Blockchain Staking Startup

btcethereumadmin - March 19, 2019

Blockchain staking startup Bison Trails has raised $5.25 million in a series seed funding round backed by Mike Novogratz’s Galaxy…

Bitmain’s Latest Zcash Miner Claimed to Have Tripled Hashing Power
Crypto News
11 views
Crypto News
11 views

Bitmain’s Latest Zcash Miner Claimed to Have Tripled Hashing Power

btcethereumadmin - March 19, 2019

Cryptocurrency mining giant Bitmain has launched a new miner for the privacy-oriented cryptocurrency zcash, which it claims, has three times…

Leave a Comment

Your email address will not be published.