Mt. Gox remains the biggest hoax in the history of digital assets. The exchange got hacked 5 years ago but the fiasco is still making the news.
Mt. Gox remains the biggest hoax in the history of digital assets. The exchange got hacked 5 years ago but the fiasco is still making the news. The CEO of the defunct exchange, Mark Karpeles, was found guilty but is unlikely to end up behind bars since he received a suspended jail sentence.
The Tokyo District Court declared that Karpeles had tried to hide the platform’s losses by mixing Mt. Gox’s financial records with his personal. He was sentenced to two and a half years in jail with a four year probation period.
“The charge of electronic record tampering is true and deserves punishment, but there’s no criminal evidence of embezzlement,” the court clarified.
Karpeles is not directly linked to the cyber crime, though his behavior remains suspicious, to say the least. Indeed, this is why the embezzlement and fraud charges are not directly connected to the hack that virtually put the exchange to bed. Supposedly, just before he was charged, Karpeles stumbled upon a cold wallet, containing 200,000 of the missing BTC.
The court accuses the former CEO of doing “massive harm to the trust of his users”.
[T]here is no excuse for the defendant, who is an engineer with expert knowledge, to abuse his status and authority to perform clever criminal acts.”
Notably, Karpeles accuses the Japanese justice system of unfair treatment. He further claims that the authorities had forced him to sign a confession by bullying him. What’s more, the defendant emphasizes he was not given access to legal representation. He asked the US government for a separate lawsuit but the United States court ultimately denied his calls.
In related news, another controversial figure from the crypto world, Brock Pierce, made the news by revealing his plans to bring Mt. Gox back to life. Pierce went out as far as promising to compensate Mt. Gox’s creditors. However, the so-called “GoxRising” movement was dismissed by Karpeles.
“It’s very tempting when you are not free and facing a system that every morning tells you just cooperate and everything will be simple. To just go with the flow and say: okay, okay,” Karpeles said in an interview.