Former CEO of Mt. Gox was found guilty, but escaped the real term
The former head of the defunct bitcoin exchange Mt. Gox Mark Karpeles was found guilty and received two and a half years probation, The Wall Street Journal reports this Friday..
The Tokyo District Court found Karpeles guilty of falsifying electronic records related to Mt. Gox, to cover up the damage caused by the hacker attack, but freed him from embezzlement charges.
“The accusations of falsifying electronic records are not unfounded and require punishment, however, no evidence could be found in the criminal embezzlement case,” the decision says..
The probationary period for Karples will be 4 years – if at this time he is not noticed for committing illegal actions, then the suspended term will remain so.
The court decision in the Karpeles case was made almost 5 years after the application of Mt. Gox for liquidation, which was filed in April 2014 and contained information about the loss of 850,000 bitcoins. Part of the cryptocurrency was later discovered by Karpeles himself..
The WSJ quotes from the defense’s closing arguments: “The collapse of Mt. Gox was not a consequence of defendant’s wrongdoing. On the contrary, the defendant tried his best to prevent it “.
In December, Japanese prosecutors demanded 10 years in prison for Karpeles for embezzlement, claiming that he used about $ 3 million of his clients to solve his own problems..
Since the start of his trial in July 2017, Karpeles has pleaded not guilty and blamed the Japanese judiciary, which, according to Bloomberg, has a 99% conviction rate, unfairly.
“I never thought that everything could end like this, and I apologize for everything that happened and for the impact that the people involved in this process have suffered,” he once said.
Separate legal proceedings against Karpeles are pending in the United States, where the court recently refused to release him from the claims of former creditors of Mt. Gox.