Former Mt. Gox CEO Goes Home

All of us have been keenly following the Mt. Gox case. To what was being said before that he might be serving a 10-year prison sentence has been flipped completely as former Mt. Gox CEO Mark Karpeles goes home a free man.

The court has acquitted him of embezzlement charges. He was being charged under misappropriation of funds from Mt. Gox accounts and manipulating company records. The courts did even find him guilty for doing so as the evidence presented revealed that he inflated Mt. Gox exchange holding by $33.5 million. His transactional record indicated that he had been investing in some other business.

So what changed?

Apparently, the embezzlement charges were dropped due to insufficient evidence. This happened because Mt. Gox did not have a reasonable accounting system in place during its prime days when executives borrowed money from the agency.

The court concluded that it would be very difficult to determine the exact figures in the company’s accounts, and hence making the evidence less strong.

Moreover, the fund transfers were not illegal but went against the company’s best interest. What does this even mean? This is subsequent to my ex making an apology.

The court saw his little venture as profitable to the firm as well!!

The Verdict

Karpeles didn’t receive a harsh punishment. He was handed a two and a half year prison sentence with a four-year suspension. All he needs to do know is stop his hands from getting dirty for the next four years and he won’t end up behind the bars.

The ruling came is as much of a surprise to us as it is to you. Mostly because Japan has a remarkably high conviction rate of about 99 percent. So we are unsure what went wrong here.

What comes as an even bigger shock is the fact that in addition to the embezzlement claim, the prosecutors also lodged an aggravated breach of trust against them but those charged were dismissed as well.

The Aftermath

The bitcoin suffered a major blow after the Mt. Gox event. This incident has been under observation for years and yet there are many questions unanswered.

Karpeles was arrested in 2015 and was under detention for 11 months. As reported by him, he was continuously interrogated for 50 days.

He has always presented himself as innocent when faced with allegations and continues to blame external factors. He apologized to his victims in the following words:

“I did my best trying to grow the ecosystem by running the biggest exchange at the time, It had big problems and still managed to hang in there… At the end of the day, the methods I chose to try to get Mt. Gox out of its trouble ended up being insufficient, insufficiently executed, or plain wrong.

I know I didn’t handle the last, stressful days of the outdrawn and painful Gox collapse very well. I can only be humble about that in hindsight. Once again, I’m sorry”

The verdict has been made and not much can be changed. What do you think about this? Are you satisfied with the result?

Soha Ali

As vanilla as it sounds, a filmmaker in the making. Soha brings the irony out of the crypto world by contributing to the Unfiltered section of BlockPublisher. Contact the editor at editor.unfiltered@blockpublisher.com

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