Latest in Gear

Image credit: Toru Hanai / Reuters

Mt. Gox chief claims innocence ahead of Bitcoin trial

His exchange lost half a billion dollars worth of Bitcoin before declaring bankruptcy
286 Shares
Share
Tweet
Share
Save

Sponsored Links

Toru Hanai / Reuters

At one point, the Mt. Gox exchange facilitated 80 percent of the world's Bitcoin transactions. That was, at least, until 2014 when someone absconded with hundreds of millions of dollars worth of the digital currency -- as well as an additional $28 million in cash -- from the exchange's accounts. Authorities in Japan have since fingered the site's chief executive, Mark Karpeles, as the caper's culprit. However, as his trial got underway on Thursday, the 32-year old French national declared his innocence, per Reuters.

Mt. Gox was originally based in Tokyo, hence the trial venue location, and filed for bankruptcy protection there, citing a flaw in its security scheme that enabled someone to make off with 850,000 Bitcoin. However, Karpeles was in trouble with the law even before the theft. He's been indicted for a pair of fund transfers that took place in 2013: one that saw cash from a Mt. Gox customer be funneled into his personal account and another wherein an account in his name on the exchange had its balance mysteriously increased.

"I swear to God that I am innocent," he reportedly told the court. Prosecutors, however, allege that Karpeles spent the $2.7 million he supposedly stole on software licensing rights and a custom-made bed.

Source: Reuters
In this article: bitcoin, business, crime, embezzlement, gear, MtGox
All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
286 Shares
Share
Tweet
Share
Save

Popular on Engadget

Engadget’s guide to Home Entertainment

Engadget’s guide to Home Entertainment

View
Facebook Portal review (2019): A redesign doesn't ease privacy fears

Facebook Portal review (2019): A redesign doesn't ease privacy fears

View
AMC is launching its own on-demand movie service

AMC is launching its own on-demand movie service

View
GoFundMe's new platform is just for charities and nonprofits

GoFundMe's new platform is just for charities and nonprofits

View
The Morning After: Listing 'basically everything' launching with Disney+

The Morning After: Listing 'basically everything' launching with Disney+

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr