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Ex-Chief of MtGox Exchange Sentenced to Ten Years in Prison

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The latest report from a local media of Japan unveiled that Former CEO of MtGox bitcoin Exchange has fraudulently manipulated data and scammed $3million worth of virtual currencies – henceforth, prosecutors proposes 10 years prison term at the Tokyo District Court.

Manipulation of Trading System

Mt. Gox Co., was once the largest cryptocurrency exchange of Japan and became bank corrupt in the year 2014. The exchange was first launched by US programmer Jed McCaleb and later purchased by Mark Karpeles in 2011.

Though exchange appears to be among the market king, it was struggling behind the scene. Prosecutors in Tokyo claim that Mark Karpeles diverted his company’s funds into other business and pocketed a huge amount of cryptocurrencies for his personal use. They reported that the funds of about ¥340 million as equivalent as $3 million worth of virtual currencies was kept in the bank account of Mt.Gox. It was being transferred to Mark’s own account from September to December 2013.

On top of these charges, the platform was asserted the lost cryptos are likely the drudged. Karpeles negated prosecutor’s claim and earlier, he said court which a report reads that “ I swear to God I am not guilty’.

However, the charges are not directly pointing to the lost coins of worth US$480million but the national broadcaster NHK media report prosecutor’s statement which goes as;

Karpeles’s alleged acts “were extremely vicious, as they completely undermined confidence in trading,”

It wasn’t the end here, the company comes with a claim, speaking about the bug within the software that might be the reason for hackers to steal those bitcoins. Moreover, Karpeles asserted that some 20000 lost coins appeared in a “cold wallet”.

however, untill today, the lawsuit case of Mt.Gox is still pending for the final decision, stay tuned with Coingape to read the next phase of hearing. 

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