Japan court hands Mt. Gox founder 2-1/2 years suspended sentence: Kyodo

Postado Março 17, 2019

"Harmed the users' trust greatly" by manipulating data and abused his expertise as an IT engineer and his position and authority".

The charges, which, according to CNN, included data falsification, embezzlement and aggravated breach of trust, stem from the collapse of Mt Gox in early 2015, about one year after close to $500 million dollars in bitcoins disappeared off the exchange.

The French businessman was found guilty on charges of record tampering, and was subsequently granted a suspended jail sentence for two and a half years.

Karpeles' trial was not connected to the mysterious disappearance, and instead, the charges he was convicted of focused on how he tampered with financial records. Alternatively, Karpeles could simply buy back the missing BTC and cover the shortfall if/when the BTC price rose.

As per one of the news channel the owner was not seen to be guilty of misappropriation but guilty of operation of computer data at the MtGox exchange, which at one point demanded to be treating more than 70 percent of every worldwide bitcoin transactions.

Tokyo-based Mt. Gox once handled 80 per cent of the world's bitcoin trades but filed for bankruptcy in 2014 after losing some 850,000 bitcoins - then worth around half a billion U.S. dollars (RM2.04 billion) - and US$28 million in cash from its bank accounts.

The scandal left a trail of angry investors, rocked the virtual currency community, and dented confidence in the security of bitcoin.

Though during the entire trial Karpeles maintained the claims of his innocence for all the charges against him, he apologized to the customers for the bankruptcy of the exchange.

Karpeles has defended his actions his since his trial began in July 2017 and has blamed the Japanese legal system of poor treatment, which, as Bloomberg documents, has 99% punishment rate. Since that time, roughly 200,000 bitcoins have been found.

"When buying Mt. Gox I should have had people around me to advise me and help with the management starting with the Mt. Gox transfer contract. The only solution I have is to actually find the real culprits", he told reporters after the hearing.

Karpeles, an enthusiast of Japanese anime and manga, came to Japan from France in 2009.

"I'm not going to prison."
Investigators eventually arrested him for falsifying documents.

In many ways, the rollercoaster ride of Karpeles has mirrored that of the bitcoin cryptocurrency that made him rich. It has since slumped and is now worth just under $4,000.