Ex-Mt. Gox CEO Avoids Prison

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The former CEO of the fell cryptocurrency market Mt. Gox, Mark Karpeles, will likely avoid having to serve prison time in Japan after receiving a suspended sentence.

Karpeles was on Friday found guilty by the Tokyo District Court for tampering with the exchange’s financial documents, as well as mixing his private finances with people of the market, according to multiple media reports. However, the court dismissed the embezzlement charges which had been raised against Karpeles, saying he “acted without ill intent.” Karpeles originally faced a prison term of up to 10 years in Japan to get the embezzlement charges.

“The charge of electronic record tampering is true and deserves punishment, but there’s no criminal evidence of embezzlement,” the court said, Bloomberg reported. It further blamed the 33-year old Frenchman for “massive harm to the trust of his users.”

“There is no excuse for the defendant, who is an engineer with expert knowledge, to abuse his status and authority to perform clever criminal acts,” the court said, before giving him a 2 1/2 year “suspended sentence,” which doesn’t have to be served unless another crime is committed within four decades. Karpeles, that has maintained his innocence during the trial, was likewise arranged to cover a portion of the price of the trial.

Finished reading Karpeles verdict. In outline, the court discovered the manner he conducted Mt. Gox was a entire mess which he tampered w/ documents to hide the reality it had been missing a great deal of Bitcoin, however he did not do it for private gain or have ill intent. Attaching related pieces. Pic.twitter.com/3n7oEwSsK0

— Yuji Nakamura (@ynakamura56) March 15, 2019

“I am happy to be judged not guilty for embezzlement and breach of trust. I will discuss with my lawyers and decide how to proceed on the remaining charge,” Karpeles told CNN in a brief remark.

Mark Karpeles purchased Mt. Gox, which was originally a market for illustrated cards, in 2011 and flipped it into the biggest cryptocurrency market in the world. In 2014, the exchange dropped in a dramatic fashion after 850,000 bitcoins were stolen, leading to a reduction of almost USD 500 million to consumers of the exchange. To this afternoon, the majority of the missing bitcoins have to be retrieved.

More than just four decades later the infamous Mt. Gox incident victims happen to be filing rehabilitation claims and are currently waiting to be reimbursed. However, it appears that they might want to wait much longer, as two different entities are slowing down the procedure: cryptocurrency firm CoinLab, led by CEO Peter Vessenes, and former child actor and crypto entrepreneur Brock Pierce, as previously mentioned.

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Mark Karpelès on the Collapse of Mt. Gox:

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