CEO Of Mt. Gox Found Not Guilty of Embezzlement. Mark Karpeles, CEO of the now-defunct Bitcoin exchange Mt. Gox, is sentenced to jail by the Tokyo District Court for two and a half years. The verdict was passed last Friday after the Court convicted him of record tampering but found him not guilty of embezzlement. 

 

“The court convicted Mark Karpeles, a 33-year-old Frenchman, for falsifying computer data but acquitted him over charges of embezzling millions from client accounts.”

-AFP-Jiji Press wrote

 

Soon after the court hearing, the news spread across the crypto community. In a tweet by a Tokyo-based tech reporter for Bloomberg, Yuji Nakamur, stated:

 

“We’re calling it that he’s not actually going to prison, In plain English: he’s guilty of record tampering, but not guilty of embezzlement. He is ‘suspended’ for 4 years, during which time if he does anything bad he’ll be jailed for 2.5 years.”

 

CEO Of Mt. Gox Found Not Guilty of Embezzlement. The 2014 collapse of the Mt. Gox exchange due to Karpeles’ criminal activity, caused a loss of up to 850,000 bitcoins. Later they found 200,000 of them. In spite of the court-appointed bankruptcy trustee selling the recouped coins in anticipation of disbursement, the recuperation procedure put on hold because of a pending $16 billion claim by a previous partner.

 

“We find the charge of electronic record tampering to be true and that it deserves punishment, but there’s no criminal evidence re embezzlement (dominant or reserve type) or violations of company laws, resulting in a not guilty ruling.”

-The court document details

 

The court acknowledged that “the creation and use of tampered records involved a monetary amount that was extremely large, resulting in severe damage to the trust of the 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. We cannot look lightly upon the criminal responsibility of the defendant,”

-Nakamura described.

 

After the court hearing, only one tweet came from Karpeles. This was in reply to a Twitter user Emilien Dutang, founder of blockchainpartner.fr, reminding him of his earlier promise.

 

“I hereby pledge any net proceeds I receive from Mtgox back to Mtgox creditors. Not that I will [be] receiving anything anyway.”

-Karpeles wrote, on Feb. 11.

 

Dutang had tweeted, “I hope you’ll keep your words,”

Later, the former Mt. Gox CEO replied, “Will do.”

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