In today’s crypto news, we are going to Japan where a group of prosecutors are seeking a 10-year sentence for Mark Karpeles who is the former chief and executive officer of the now-bankrupt Bitcoin exchange Mt. Gox.
As a report from The Mainichi on Wednesday noted, the prosecutors claimed that Karpeles used customers’ funds for his own personal use while speaking to the Tokyo District Court.
According to the details, Karpeles reportedly transferred 341 million yen (approximately $3 million) of his customers’ money kept in a bank account to his personal account from September to December 2013, as a court indictment stated. The cash was taken for uses such as “investing in software development business for personal interest.”
On top of this, the authorities are accusing Karpeles of manipulating the data on the Mt. Gox trading system, fabricating fake balances and playing a great role in the destroyance of the market and “the confidence of Bitcoin users.”
In 2017, Karpeles pleaded not guilty in the court to the charges of embezzlement and data manipulation and denied all the allegations. Later in April this year, he apologised for the company’s bankruptcy and stated:
“I never imagined things would end this way and I am forever sorry for everything that’s taken place and all the effect it had on everyone involved.”
Mt. Gox filed for liquidation in April 2014 after claiming to have been hacked for around 850,000 Bitcoin, some of which was later found.
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