Home News Exchange CEO of Defunct Exchange Mt Gox Goes Scot-Free

CEO of Defunct Exchange Mt Gox Goes Scot-Free

March 15, 2019 15:37
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In what will come as sad news to the users of now-defunct Mt. Gox, Chief Executive Officer (CEO), Mark Kapelès, the person in the eye of the storm was given a suspended sentence by a court on Friday.

As reported by Crypto-News India on Thursday, prosecutors of a Japanese court have demanded the CEO, Mark Kapelès, be sentenced to 10 years in prison under charges of embezzlement and fraud.

This is not the first time, such a request has been put forward by the prosecutors. To provide a little context to this case: Mt. Gox exchange filed for bankruptcy in 2014, when its security was breached and millions of dollars worth Bitcoins were lost sometime in 2011-12.  As earlier reported by Crypto-News India, at the time, the exchange still had a lot of funds which were seized by the government and is controlled by a trustee now. This trustee is responsible for overseeing redistribution of assets to creditors.

Now it appears, that Kapelès will be serving a suspended sentence, despite evidence to the contrary, reported news portal Bloomberg Quint.

The news portal reported that the former Mt. Gox chief executive officer sometimes mixed his personal finances with those of the exchange and cooked up the account books, allegedly to hide the fact that the platform had lost money to hackers, the Tokyo District Court had said on Friday. The court cleared Kapelès of embezzlement charges, concluding that the 33-year-old Frenchman had acted without ill intent.

The court said, in its verdict, “The charge of electronic record tampering is true and deserves punishment, but there’s no criminal evidence of embezzlement.” The court further blamed Kapelès for “massive harm to the trust of his users,” saying “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.”

It also concluded that the former CEO be given 2.5 years of suspended sentence and he wouldn’t have to serve time, unless he committed another violation in the next four years.

While this concludes the five-year old mystery, sometimes it’s hard to believe that justice is blind.

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