Mt. Gox CEO Could Get 10-year Prison Sentence
Japanese law enforcement agencies will require in court 10 years jail term for the Mark Karpeles, ex-head of the cryptocurrency exchange Mt. Gox. He is accused of fraud and misuse of clients' money.
The prosecutors of the bankruptcy of Mt. Gox will be required to sentence the ex-CEO to a 10-year jail term.
According to the authorities, Karpeles used clients' money for his personal purposes. In September-December 2013, Karpeles transferred from Mt. Gox more than $3 million of customers’ money to his bank account. Next, the defendant invested this money in a software development business in which he had a vested interest.
Karpeles is also accused of manipulating the Mt. Gox trading system. Allegedly, the ex-CEO fabricated financial reports to inflate the estimated number of cryptocurrencies on the exchanges’ wallets.
Mt Gox filed for bankruptcy in April 2014. Then the exchange claimed it was attacked by hackers who stole more than 850,000 BTC. Karpeles was almost immediately arrested. The trial lasted until 2017, and in July the court pledged him innocent.