Japanese Court Convicts Former CEO of Mt Gox For Manipulating Data

Japan’s top court upheld the decision of the Tokyo-based lower court to reject the appeal of the former CEO of Mt Gox. Mark Karpeles was arrested in 2015 and charged with “manipulating electronic data” and successfully evading charges of embezzlement.

Former Mt Gox boss Mark Karpeles must now face charges of “manipulating electronic data” stemming from the Mt Gox investigation. Karpeles was arrested in August 2015 and he claims he did not take the money when 850,000 BTC was stolen from the platform.

Last year, a Japanese court ruled that Karpeles would not face embezzlement charges, but the manipulation charge carries a sentence of two years and six months in prison.

The sentence was suspended for more than four years, but on Thursday, Karpeles had to try again to clear his name. A Tokyo court accused Karpeles of falsifying figures to hide the matter from Mt Gox’s clients.

Karpeles has spoken publicly about the court’s recent decision. “Today’s verdict is unfortunate, and I’m reviewing its contents with my attorney and will decide how to proceed from there in the coming days,” said Karpeles, Thursday night.

Prosecutors initially demanded 10 years of service in Japanese prisons. Karpeles was accused and charged with three counts, but only one of them got stuck. Of the 850,000 BTC ($7.9 billion using today’s exchange rates) stolen from Mt Gox, 200,000 BTC or 15% were recovered.

Customers Struggle To Get Their Money Back

For the past three years, Mt Gox customers who lost money on the exchange have struggled to get their share of the 15% ($1.8 billion) BTC left behind.

More recently, organizations like Gox Rising Brock Peirce have offered Mt Gox clients a percentage of bitcoin debt. Gox Rising, for example, offers $800 per BTC for each claim, while New York-based private equity firm Fortress offers Mt Gox creditors claims at roughly the same rate per coin.

Karpeles found 200,000 BTC in cold storage after the exchange went bankrupt and after the company filed for bankruptcy.

What do you think about the Tokyo high court’s decision to enforce the manipulation of Karpeles’ electronic data fees? Let us know in the comments below.

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