Mark Karpeles, former CEO of Mt. Gox crypto exchange, was found guilty of electronic record tampering by Tokyo District Court. As reported by Bloomberg newsmen, the Japanese body of justice sentenced him to 2.5 years in prison.
The court concluded that Mark acted without ill intent so he was cleared of embezzlement charges. However, his unintentional activities and inactivity lead to severe losses of clients’ funds, which was a major cause of the cryptocurrency market collapse in 2014.
Nevertheless, the imprisonment was sentenced and Karpeles will not have to serve the punishment in prison unless he commits an offence within four years.
Mt. Gox owed a lot of money to its former clients. Damages litigation and compensation processes last so far.
Let’s go back to the charges. The court found that the Mt. Gox CEO hid data about the massive loss of Bitcoin after hackers’ attack, but did it without malicious intent and not for personal gain. One can argue with that, but the law is the law.
If you know Japanese, you can find out more details in the photographed court verdict. Let us know in the comments below!