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.
Ex-CEO Of Crypto Startup AriseBank Pleaded Guilty Of Defrauding Investors For $4.2 Million
“We will not tolerate flagrant deception of investors – virtual or otherwise.”This kind of a plea deal Rice agreed to with Cox is one of the first of its kinds in the US Federal Court that includes crypto companies. Rice pleaded guilty on security fraud charges after he admitted that he lied potential investors into investing hundreds of dollars. Rice was found guilty of scamming investors into buying his AriseCoin cryptocurrency which claimed to bring ‘’no-risk returns.’’ Investors placed their money right into Rice’s scam net and invested more than $4,250,000 in BTC, ETH, and LTC, into the ICO that was supposed to provide them with the AriseCoin. He also claimed that he raised $600 million in an ICO which later turned out to be false. The US Attorney’s Office stated:
“Mr. Rice quietly converted investor funds for his own personal use, spending the money on hotels, food, transportation, a family law attorney, and even a guardian ad litem – facts he failed to disclose to investors.’’AriseBank was named as the best-decentralized bank by Rice and he claimed that the crypto bank will provide the customers ‘’FDIC-insured accounts and transactions’’ which the United States Securities and Exchange Commission turned out to be false. He also claimed that his bank supports Visa card payments and that the platform supports hundreds of virtual currencies. AriseBank was not authorized for providing banking services in the state of Texas. Rice is now obliged to repay the investors who lost their money and he is also facing twenty years in prison if he gets sentenced in July. Initially, he was facing up to 120 years in federal prison.
QuadrigaCX Co-Founder Was Involved In Criminal Activities In The Past
Boston Legal System Damaged After BTC Ransomware Attack
“CPCS’s computer systems have been attacked and are not working properly. We are still representing clients. In addition, there is no evidence that confidential information from clients has been released as a result of these attacks.”Initially, the attack happened on February 27. The organization believed that paying the ransom means a waste of money so they decided to restore the systems manually. Two weeks after, the entire justice system in Boston can feel the damaging effects. The agency cannot really say how long the delay will last or when they will get back online. In the meantime, people working in the agency cannot use their email or enter the agency’s website. Ransomware attacks became popular in 2015. The attackers mainly targeted police agencies that end up paying the ransom. The public infrastructure is always a target of ransomware attackers since the offer public services and cannot end up being crippled because the people are the ones who pay the higher price. The public defenders didn’t say how much money the attackers demanded. However, the cost to unlock a computer could start from $100 up to thousands of dollars. The attackers usually target victims individually but law enforcement agencies or other government agencies are not excluded. Last year, a couple of Dutch hackers were sentenced to community service after attacking more than 1,000 computer systems and gathering over $11,000.
Thieves Steal $200k Worth Of Bitcoin (BTC) Across 7 Canadian Cities
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