12/12/18 10:39 UTC-4

Mark Karpeles, CEO of Mt. Gox, can be imprisoned for 10 years

Japanese prosecutors are going to imprison Mark Karpeles, the former chief executive officer of the bankrupt Mt. GOx exchange, for a period of ten years – as reported by The Mainichi news agency.

According to a message in The Mainichi, published on Wednesday December 12, prosecutors said in the Tokyo District Court that Karpeles intends to use the funds of clients for personal purposes.


Bankruptcy of Mt. Gox

According to the information, he transferred 341 million yen (3 million dollars) stored in Mt. Gox, on his personal account. The money of the clients of the platform was transferred during September-December 2013, according to the court’s indictment. The funds, according to the judges, were used for such purposes as "investing in a software development business for personal gain".

Karpeles is also accused of manipulating clients 'personal data and "illegal disposal of users' personal information".

Recall that back in 2017, Karpeles pleaded not guilty in court on charges of embezzlement and data manipulation. He also denies the charges now.

In April of this year, Mark Karpeles apologized for the company's bankruptcy, saying: "I never thought it would end this way, and I constantly regret what happened and how it affected all users of the platform."

Recall that the Mt. Gox officially applied for liquidation in April 2014. The voiced reason was a statement about burglary and bankruptcy. From the announcement of the liquidation: the platform was hacked, and the amount of losses was 850,000 Bitcoins.

The case continues from the moment of hacking. In July 2018, creditors won when the court issued a resolution approving the petition for the start of civil rehabilitation. Last month, Nobuaki Kobayashi, trustee of Mt. Gox, sought to extend the deadline for filing civil rehabilitation claims until December. Now, Mark Karpeles, CEO of Mt. Gox, can be imprisoned for almost ten years, because the Japanese prosecutors admitted his guilt.


Editor: Yuliya Soroka

See also: "The Gibraltar Blockchain Exchange (GBX) insures assets against hacking"

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Hypes, funds, fiat money