Mt Gox CEO could Face a 10-year Jail term for Embezzlement

On 12 Dec. 2018, the prosecutors sought out for a 10-year jail term for Mark Karpeles, the former CEO of Mt. Gox Co.

They claimed that the Mark Karpeles “diverted company funds to such uses as investing in a software development business for personal interest” and thus “played a great role in totally destroying the confidence of Bitcoin users.”

The former CEO, a native from France, claimed himself “not guilty” during his first trial in July 2017 after reading out a prepared statement in Japanese.

He was accused of embezzling 341 million yen (or $3 million) of the users’ money kept in the Mt. Gox bank account by transferring it to his own account from September to December 2013. To audit the balance, he allegedly manipulated data on the company’s trading system.

In Feb. 2014, Mt.Gox had shut down all transactions around the world by announcing that it had gone bankrupt after losing 850,000 BTCs which was worth around 48 million yen at the time. They claimed that they were hacked.

In July of this year, the Tokyo court issued an order approving a petition to commence civil rehabilitation proceedings for Mt. Gox. Not too long ago, Nobuaki Kobayashi, the trustee of Mt. Gox asked for an extension of the deadline for filing civil rehabilitation claims to December from October.

Link to the original news article can be found here.

A product that is supposed to secure a person’s assets has led to them losing it all. It’s times like these we need a product like Cryptocurrency Theft Insurance.

 


About Bank Of Hodlers

Bank of Hodlers is building a customer-centric bank on the blockchain, by providing financial services which include loans and payments backed by your digital assets.

We are organizing a Bounty Program where you can earn up to 1700 BOH tokens (which will be equal to $340 at the time of our sale) by completing the most simplest of actions. The total allocation for the bounty is $1 million. Participate now and help us create an ecosystem where people will be able to bank on their digital assets.

 

crypto blog

Want to share your thoughts on this?

Up ↑

%d bloggers like this: