Latest in Gear

Image credit: QUENTIN TYBERGHIEN via Getty Images

Mt. Gox CEO Mark Karpeles cleared of embezzlement charges

He was, however, found guilty of electronic tampering.
150 Shares
Share
Tweet
Share
Save

Sponsored Links

QUENTIN TYBERGHIEN via Getty Images

Former Mt. Gox chief Mark Karpeles has been found guilty of falsifying financial records but acquitted of all other charges, including embezzlement. According to Bloomberg, the court has given him a two-and-a-half year suspended sentence, which means he won't have to serve jail time unless he commits another violation within the next four years. Tokyo-based Mt. Gox used to be the biggest cryptocurrency exchange in the world until it lost $500 million worth of bitcoin in 2014 to a cyber heist.

When Karpeles claimed to have recovered a fourth of the 850,000 lost bitcoins, authorities questioned the accuracy of his statements. He was then indicted on a slew of charges -- he's been on trial for embezzlement since 2017 -- with prosecutors calling for at least 10 years of jail time. Now, the Tokyo District Court has determined that the former chief acted without ill intent: he apparently used his personal finances to tamper with the exchange's accounts and hide the fact that Mt. Gox lost a massive amount of money to hackers.

While the court didn't find evidence of embezzlement against Karpeles, it still reminded him in its ruling that what he did was a "massive harm to the trust of his users." The court's decision added: "There is no excuse for the defendant, who is an engineer with expert knowledge, to abuse his status and authority to perform clever criminal acts."

Source: Bloomberg
In this article: bitcoin, gear, internet, mark karpeles, mt. gox
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
150 Shares
Share
Tweet
Share
Save

Popular on Engadget

Engadget's Guide to Privacy

Engadget's Guide to Privacy

View
iFixit's iPhone 11 Pro Max teardown investigates charging rumors

iFixit's iPhone 11 Pro Max teardown investigates charging rumors

View
TiVo wants to make a comeback with $50 Android TV dongle

TiVo wants to make a comeback with $50 Android TV dongle

View
Neo Geo retro stick console includes 'King of Fighters,' 'Samurai Shodown'

Neo Geo retro stick console includes 'King of Fighters,' 'Samurai Shodown'

View
Watch the 'Android' Nokia phone that never had a chance to exist

Watch the 'Android' Nokia phone that never had a chance to exist

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr