Mark Karpeles is responsible for failing to protect funds, says Bitcoin Cash’s Roger Ver

Roger Ver, the CEO of Bitcoin.com and a well-known Bitcoin Cash proponent, recently spoke about Mark Karpeles. Karpeles, the former CEO of Mt. Gox – the infamous Bitcoin exchange, made headlines this week after he received a suspended sentence from the Tokyo District Court.
Karpeles was found guilty of altering numbers in the firm’s financial records and was acquitted of all other charges, including embezzlement of funds. The verdict came as a relief for the CEO as he would have faced up to ten years in prison if the alleged embezzlement charges had been proven. He was charged with the embezzlement of around $3 million in customer funds.
The Tokyo District Court ruled that “he had acted without ill intent,” reported Bloomberg. Additionally, he was given a two-and-a-half year suspended sentence, which he will have to serve if he committed another crime within the next four years.
The court also stated,
“The charge of electronic record tampering is true and deserves punishment, but there’s no criminal evidence of embezzlement […] there is no excuse for the defendant, who is an engineer with expert knowledge, to abuse his status and authority to perform clever criminal acts.”
Roger Ver, in an interview with Decrypt, stated that Karpeles was “responsible for not doing a good job protecting the funds from the hackers”. Nevertheless, the Bitcoin Cash proponent also clarified that he held the hackers responsible for stealing the funds.
Mt. Gox was once the biggest Bitcoin exchange platform in the world, controlling over 70% of all BTC transactions. However, the exchange fell victim to a hack, and subsequently lost control of over 7% of all Bitcoins in circulation. This resulted in the platform shutting down its operations and declaring bankruptcy.
Presently, Mt. Gox is undergoing a civil rehabilitation program under which victims of the platform will be repaid their losses with the Bitcoins that were discovered by Karpeles in cold wallets. Ver is noted to be one of these victims, holding “life-changing amounts of Bitcoins” on the exchange, reported Decrypt.
Further, with respect to Karpeles’s suspended prison sentence, Ver said that it was only for “those who are physically dangerous towards others”. He also suggested that people should be punished after they were convicted, not before, in light of Karpeles being interrogated for 50 days in a row.
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Source: AMB Crypto

Mt. Gox’s Mark Karpeles Found Guilty Producing Illegal Records, Gets Suspended Term

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Mt. Gox’s Mark Karpeles Found Guilty Producing Illegal Records, Gets Suspended Term
Mark Karpeles, who presided over the dramatic 2014 collapse of the world’s biggest cryptocurrency exchange Mt. Gox, was found guilty of tampering with financial records but will likely avoid jail time after receiving a suspended sentence.
Mt. Gox’s Mark Karpeles Found Guilty Producing Illegal Records, Gets Suspended Term

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Source: CoinSpeaker

Mt. Gox: Tokyo Court acquits Mark Karpeles on embezzlement charges; finds him guilty of electronic data tampering

Mark Karpeles, owner and CEO of the now-defunct Bitcoin exchange, Mt. Gox, has been convicted of falsifying electronic data, but was acquitted of embezzlement charges by Tokyo District Court on 15 March.
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. This means that Karpeles wouldn’t have to serve time in prison if he does not commit any crime for a period of four years. Additionally, the court also ordered Mark Karpeles to compensate for trial costs.
Yuji Nakamura, a Bloomberg tech reporter, summarized the Tokyo District Court’s verdict on Karpeles,
“In summary, the court found that the way he ran Mt. Gox was a total mess and that he tampered with records to hide the fact it was missing a lot of Bitcoin, but he did not do it for personal gain or have ill intent.”
According to his translations, the court stated that the use of tampered data involving a large sum of funds caused severe damage to the customers of Mt. Gox. However, there was no criminal evidence of the serious allegations Karpeles was charged with. He also stated that the defendant’s criminal responsibility cannot be undermined.
Tokyo prosecutors had previously accused Karpeles on multiple accounts of fraud, including embezzlement and aggravated breach of trust, demanding a 10-year prison term for him. Maintaining his innocence since the very beginning, the CEO of the infamous exchange said that he was happy to be found not guilty of the serious charges of embezzlement and breach of trust.
The Mt. Gox fiasco accounted for a loss of 850k BTC, out of which only 200k coins have been recovered. The breach resulted in a loss of over 7% of the entire Bitcoin circulation in early 2014. Later, the company filed for bankruptcy and ceased its operations.
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Source: AMB Crypto

Mt. Gox Case Verdict: CEO Karpeles Will Not Serve Jail Time

Mt. Gox CEO, Mark Karpeles was found ‘not guilty’ of the fund embezzlement charges imposed on him. However, he was found guilty of submitting falsified records to the Japanese District Court.
The Tokyo District Court has passed a 2-year 6-month sentence suspended for 4 years. Hence, Karpeles has been laid off with a warning and a probation period of four years. If he repeats his felony or is found guilty in the future again he would have to serve 2.5 years in prison after the judge’s discretion.
Proceedings of the Case And Final Statements
Karpeles’ chief lawyer Nobuyasu Ogata has had to clear the doubts around cryptocurrencies and Bitcoin in order to make Karpeles’ stand. He argued that Karpeles was actually ‘the victim’ of the Mt. Gox heist in February 2014.
The Japanese District Court has acquitted Karpeles of ‘more serious crimes’ that he was allegedly accused of: Fund Embezzlement and Fraud. It was noted that Karpeles was humble and listened to the verdict humbly.
Acquittals are rare in Japanese courts, where the conviction rate is higher than 99 percent. Karpeles also noted that, he was interrogated for months without a lawyer and bullied into signing a confession, a “nightmare” process during which he lost 77 pounds over 11 months.
Karpeles swore that he never utilized any customer fund and Mt. Gox was a security breach, for which he is deeply apologetic.
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Source: CoinGape

6500000 Bitcoins Lost Forever, Mt. Gox Owner to Meet His Fate in Court on Friday March 15

The infamous Mt. Gox saga will finally meet an end in the Japanese Courts on 15th March 2019. The owner of the exchange, French Mark Kerpeles, 33, is accused of ‘faking digital data and embezzling millions of dollars ($3 million).’; If found guilty he will be heavily penalized and might serve a sentence of ten years. Here is a small recap of the entire episode:
2014 Mt. Gox Shutdown
In February 2014 Mt. Gox had stopped withdrawals and trading on its exchange reportedly due to maintenance issues. However, on 28th February 2014, it filed for bankruptcy claiming that the most significant exchange of the world at the time had been hacked of 850000 Bitcoins.
The Bitcoin market soon plummeted, and investors lost around $425 million worth of Bitcoins at the time. The case was brought to light at the Japanese Court, and Mark Karpeles, the owner of the exchange, was held accountable.
In March 2014, a public release on the website announced that they had recovered 200000 Bitcoin from the cold storage wallets of Mt. Gox Exchange. The funds were held in ‘trust’ by the Japanese Authorities for credit protection.
2015 Case Proceedings: 650000 Bitcoins Lost Forever?
After the revelation of the 200,000 Bitcoins, the investigation reached a dead-end due to lack of KYC and ALM compliances at the time.
Mark Karlepes was later arrested in Japan in August 2015. Kerpeles is alleged to have manipulated the exchange data for years during the running of the exchange embezzling almost $3 million. He served one year of imprisonment until July 2016 when before he was released on bail.
This is a very small amount with respect to the value of 6500000 Bitcoins still reported missing at the exchange. Nevertheless, if found guilty, he would be penalized heavily.
Satoshi Mihira, chief attorney at Mizuho Chuo law firm, said: “If it was an outside hacker who stole the currency, it’s a problem. But if he stole even part of the money, it would be embezzlement.”
How Much Did The Investors Actually Lose?
The proceedings against Mark Karpeles could add some funds to total credit amount, however, the illicit owner of 6500000 Bitcoins from Mt. Gox still looms at large.
Nevertheless, all is not lost for its investors. In June 2018, when the price of Bitcoin was $6200, the Tokyo District Court had initiated a credit reimbursement program known as civil rehabilitation. Funds to the tune of 170,000 each of Bitcoins and its hard fork Bitcoin Cash, worth roughly $1.2 billion were credited back its ex-customers and debtors. The amount is still almost three times the amount that was reportedly lost during the heist.

“Enormous assets…will be returned to creditors of Mt. Gox,” Shin Fukuoka, a leading attorney, and partner at Japan’s Nishimura & Asahi law firm, he also wrote in a statement. “This is the creditors’ victory.”

First creditors meeting since Civil Rehabilitation completed today for #MtGox – next one will be on March 20th 2019. Remember, deadline for filing Civil Rehabilitation claims is on October 22nd 2018, so if you have a claim against MtGox, remember to file on time!
— Mark Karpelès (@MagicalTux) September 26, 2018

Prosecutors’ Claims Against Kerpeles
The prosecutors against have filled for a 10-year sentence and reimbursements to creditors from his personal assets. According to the prosecutor, they have reports of extravagant spending and investments by Mark Karpeles which might indicate that the funds were ill-founded.
They have found considerable investment in a 3D-printing software business that had nothing to do with the exchange. Furthermore, a $54,000 worth canopy bed, thousands of dollars on overseas trips for his distanced wife,  and spent thousands of dollars on living a luxurious life (reportedly $120,000 annually).
Karpeles’ Defence
The owner of the disputed exchange has been active on social media ever since his release. Although he has been accused of fraud, and the investors and ‘Twitterati’ have bad mouthed Karpeles; He continues to maintain a non-guilty stand.
“Most people will not believe what I say. The only solution I have is to actually find the real culprits,” he told reporters after the hearing.”
 

When you lose an argument, what better way to score a win than to attack the person themselves rather than the argument. There’s a word for that thankfully: argumentum ad hominem. Look it up.https://t.co/jA1Zp4Atrh
— Mark Karpelès (@MagicalTux) February 10, 2019

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Source: CoinGape

Brock Pierce Set to Make Mt. Gox Great Again, and Here’s How

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Brock Pierce Set to Make Mt. Gox Great Again, and Here’s How

Brock Pierce wants Mt. Gox creditors to receive 100 percent of whatever they’re owed. He’s also fought with former Mt Gox CEO and majority shareholder Mark Karpelès on Twitter about the feasibility of his plan and whether it’s even legal.

Brock Pierce Set to Make Mt. Gox Great Again, and Here’s How

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Famous VC Brock Pierce Unveils His Unbelievable Plan to Remedy Notorious Mt. Gox Theft

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Famous VC Brock Pierce Unveils His Unbelievable Plan to Remedy Notorious Mt. Gox Theft

Pierce charts the new plans of repaying the Mt. Gox victims through the creation of a new company under the same brand and its native cryptocurrency Gox Coin.

Famous VC Brock Pierce Unveils His Unbelievable Plan to Remedy Notorious Mt. Gox Theft

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Source: CoinSpeaker