Mt Gox Bitcoin exchange’s Karpeles avoids jail time in Japan

  • Bizline

Mar 17, 2019-

Mark Karpeles, who headed Mt. Gox, a Tokyo-based bitcoin exchange that went bankrupt after a massive hacking, was found guilty Friday of manipulating electronic data but cleared of embezzlement and breach of trust charges. The Tokyo District Court handed down a prison sentence of two years and six months, suspended for four years, meaning Karpeles will not have to serve jail time. Karpeles, a 33-year-old Frenchman, was arrested in August 2015, and suspected of taking money from his clients. He said he was innocent, arguing he did not pocket the money that got lost at his exchange. Prosecutors had demanded 10 years in prison. Karpeles, appearing in court in a dark suit, quietly sat listening to the verdict. His case drew global attention, coming at a time when cryptocurrencies were still relatively new. So did his nearly yearlong incarceration ahead of his trial. Japan’s criminal justice system has drawn scrutiny more recently with the arrest and detention for more than three months of Nissan Motor Co.’s former chairman, Carlos Ghosn. Ghosn was released on bail last week. Although the court ruled Karpeles had not embezzled money, it said he had manipulated data to harm his clients, betraying their trust and abusing his engineering skills.  (AP)

Published: 17-03-2019 10:27

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