Former Mount The CEO of Gox convicted of falsifying records but likely to avoid jail


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Mark Karpeles, the former general manager of the deceased Mount, has now disappeared. The Gox Cryptocurrency Exchange has been found guilty of altering financial records, but it will likely avoid jail time after being sentenced to a suspended sentence.

The former leader, a well-known figure in the Bitcoin space, was most often associated with the brutal and sudden collapse of Mt. Gox's cryptocurrency swap in 2014 was on trial for alleged misappropriation of funds and account manipulation.

The Tokyo District Court now concluded that while Karpeles was manipulating the books, often combining personal and commercial cash flows to mask the loss of funds caused by the cyberattackers, he was not involved in any embezzlement scheme. as Bloomberg reports.

Karpeles was sentenced to two and a half years, suspended for four years. As long as the old Mt. The leader of Gox goes out of his way and will not be in trouble with the law for the next four years. Karpeles will not have to go to jail.

According to the publication, the court declared that there was "no criminal evidence of embezzlement", but that "the accusation of falsification of electronic records is true and deserves a penalty ".

Karpeles was not on trial for the loss of Bitcoins that were not recovered from Mount. Crash Gox.

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Mt. based in Tokyo. Gox suddenly closed in 2014, taking away 850,000 Bitcoins. This figure was then revised to 650,000 Bitcoins lost after 200,000 Bitcoins were "found" in an old wallet and Karpeles was arrested a year later.

"After their discovery, the BTC was transferred to a safer environment and the lawyers worked on how to tell the court," Karpeles said. "Announce[ment] was made after these BTCs were moved to a new cold paper-based wallet with court approval. "

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Karpeles has always maintained his innocence in the face of theft. In a Reddit Ask Me Anything (AMA) session held last year, he said, "I am innocent, proving this in a Japanese court is a challenge, but I do not give up."

The court's decision marks the closure of another chapter of Mount. Gox's story. A continuing battle between property rights and contractual claims, creditors' cases, and many former investors still hope to be able to someday recover their lost bitcoin, a possibility now controlled by courts and civil rehabilitation administrators.

When asked what Karpeles would do if he could go back and change something about Mt. Gox during AMA, the old Mt. The CEO of Gox said last year:

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"When buying Mt. Gox, I should have been surrounded by people to advise me and help me manage, starting with the Mt. Gox Transfer Agreement.

I am a tech guy, and Bitcoin was a technology thing at the time. In April 2011, an article in Forbes definitely changed Bitcoin. I found myself managing emergencies every day without having the time to do the work that should have been done. "

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