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Bitcoin stock market CEO pleads not guilty: Mt. Gox

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Born in France, Mark Karpelès is the former CEO of the now closed crypto-market Mt.Gox. Karpelès finally pleaded not guilty in the criminal proceedings against him. This was reported by the public Japanese news broadcaster NHK.

Underlying was a hacking attack on the Mt.Gox crypto exchange in 2014, which stole 850,000 bitcoins and resulted in nearly half a billion dollars worth of damage. The offender or the perpetrators have not yet been determined and much remained in the dark. Mt.Gox went bankrupt after the hack and the Bitcoin crashed for years. In August, the Japanese authorities arrested Karpelès for alleged data manipulation.

The case against Karpelès

The case against the now 33-year-old Karpelès is currently taking place in Tokyo's district court. The prosecution accuses Karpelès of embezzling about $ 3.1 million and data manipulation.

In his final plea Karpelès apologized for his failure, which led to the loss of 850,000 Bitcoin. Nevertheless, his regret should not do much, because the process does not relate to the loss of Bitcoin. Rather, it's about his handling of customer funds.

The criminal case was opened in July of last year. The verdict is expected on March 15, 2019.

10 years in prison?

Earlier this month, there were reports that the prosecutor's office was applying for a 10-year prison term for Karpelès.

Karpelès himself had claimed, among other things, the allegedly misappropriated funds were not customer money. Rather, it was the profits of the crypto exchange. The prosecution sees this differently. According to her, Karpelès used the money to invest in a technology start-up, buy luxury items, and pay prostitutes for their services.

Compensation for creditors

In addition to the process, investors are already implementing plans to compensate investors. In September, Mt.Gox opened its online system to register claims for corporate creditors. One month ago, private creditors were able to register their claims. End of October the registration ended. It is expected that the managing trustee will submit to the courts by 24 January 2019 a list of accepted and rejected claims.

At the time of the hack, Bitcoin's price was around $ 480. Karpelès had then found 200,000 Bitcoin that had been stored in the cold storage. If the crypto exchange had continued the insolvency proceedings, then all investors could have been compensated according to the current price. Even the former CEO would have been a few million richer.

However, a Japanese court ruled in the middle of the year that the crypto exchange must leave the bankruptcy proceedings. At the same time, it cleared the way for compensation for creditors in Bitcoin instead of cash.

Sources: NHK (in Japanese), Wall Street Journal (published in World), Mt.Gox, Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/bitcoin-boersen-ceo-plaediert-auf-nicht-schuldig-mt-gox/

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