Mt. Gox CEO Karpeles threatening 10 years in prison in Japan
Home News Mt. Gox CEO Karpeles threatening 10 years in prison in Japan
Marcus Misiak –
The prosecutors of the district court of Tokyo have demanded a ten-year imprisonment against Mark Karpeles, the former CEO of the once world’s biggest Bitcoin exchange. Prosecutors seek long sentence for embezzlement of funds from Mt.Gox customers. Karpeles denies all of the allegations, a report said.
The prosecutors accuse Karpeles to have about 340 million Yen of accounts misappropriated, the Mt. Gox on behalf of customers, has managed, in the last four months of the year 2013. The prosecutors also say that Karpeles has used the money for business acquisitions and rental payments. In addition, Karpeles is to have part of the money for prostitutes issued.
Karpeles said that the money was taken as a temporary loan. The district court argued, however, that there is no documentation for the loans granted. Also, you indicated that there was no intention to repay the loan. The prosecutors of the district court of Tokyo, said : “There was no documentation of the loan and there was no intention to pay the money back”. They suggested a therefore, harsh judgment, because Karpeles is a high amount of customer deposits of Mt.Gox has embezzled.
The court also said that Karpeles accounts should be manipulated by changing the data of the stock exchange. The court has also claimed that he has some of the company laws of misappropriation of clients injured funds.
The downfall of Mt. Gox
Mt. Gox in February 2014 in bankruptcy, after the 48 billion Yen ($423 million) had disappeared in Bitcoin and 2.8 billion Yen in cash. Karpeles denies any involvement in fraud and said that Mt. Gox was hacked. The prosecutors, however, did research never the true cause for the incident.
In the month of may 2014, the 200,000 “lost” Bitcoins have been discovered in a digital memory, which was in front of the Hack in use. This frozen Bitcoin Reserve has won over the years quite a bit of value, so the values went far beyond the claims of the victims lost investments.
In June of this year the court has transferred the proceedings in a civil rehabilitation process that allows the then investors in the stock market, refunds in Bitcoin.