Mt Gox CEO Found Guilty of Tampering with Bitcoin Exchange Records, Gets 2+ Years as Sentence
Anyone who knows about the travesty of Mt. Gox knows the name “Mark Karpeles” as well. Buying the exchange, which was originally meant for Magic: The Gathering, back in 2011, it eventually failed in 2014 when millions disappeared from the cold wallets of the project.
It did not survive long after that, and the Tokyo District Court recently brought down charges on Mark Karpeles.
The charges themselves were not for the missing $450 million in Bitcoin that disappeared from Mt. Gox, as The Block reports. Instead, the charges were for tampering with records, which he was found guilty of today.
However, he was found not guilty on embezzlement and violation of company law. His verdict comes with a sentence of 2.5 years. However, the Wall Street Journal reported that good behavior for the next four years will ensure that he does not go to jail.
In 2015, Karpeles had stood trial as well, when he was charged with faking trading information at Mt. Gox, spanning across “several years,” and choosing to embezzle $3 million in funds that were attributed to customers. The prosecutors stated that the embezzled funds were used for the purchase of an apartment at $11,000 per month for rent and multiple overseas trips.
At this point, Mt. Gox’s hackers have never been unveiled, and it is likely that they never will be. However, the way that this entire situation has unfolded has shown the crypto industry that there are significant loopholes that need to be corrected. Furthermore, it displays the necessity for establishing crypto regulations and legalization around the world.
Surprisingly, Japan was the first to legalize bitcoin trading, and it is where Mt. Gox held its headquarters. While the framework was established, the country established stricter operational criteria in 2017, three years after this hacking incident. Their regulations include intense Know Your Customer protocols.