The Former CEO of Mt. Gox Mark Karpeles pleaded his innocence in his closing arguments of the trial according to the latest crypto news coming from Japan where he is still facing charges of embezzling $3.1 million.
Mark Karpeles is in Tokyo currently on trial for embezzlement charges but also data manipulation after the major hack of Mt. Gox.
In his closing arguments, Karpeles apologized for the not being able to prevent the loss of 850,000 bitcoins which led the exchange to shut down. However, he is not on trial for the loss of those bitcoins but rather how he handled the funds of his clients and failing to protect their data.
The trial started last year in July and is taking place at the Tokyo District Court but a final verdict is expected in March 2019. The former CEO could face a prison sentence up to ten years for embezzlement.
At the start of December, the prosecutors pointed out that they are seeking a 10-year prison sentence for the former CEO. Karpeles did argue that the funds that he embezzled were a ‘’temporary loan.’’ The prosecutors didn’t take his claim into consideration saying that there is no paperwork to support his statement.
Karpeles also insisted that the funds weren’t really client funds but generated revenues by the exchange itself. He used the funds to invest in a tech startup but also to buy luxurious items.
Currently, there is an ongoing plan to compensate the investors who lost their asset after Mt. Gox was hacked. Back in September, the exchange opened an online filing system to corporate creditors and retail investors. The entire process ended in October and the court is expecting to receive a list of rejected and approved claims.
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