Mark Karpeles, Former Head of Mt. Gox Faces 10-Year Jail Term

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French Man Mark Karpeles, The Former CEO of Mt. Gox faces Jail Term

The former Chief Executive Officer of Mt. Gox, Mark Karpeles, is accused of manipulating the data and escaping with cryptocurrency. The Japanese prosecutors requesting for a jail term of 10 years for Mark for escaping with cryptocurrency worth millions of dollars.

According to Nikkei, the Japanese media, the exchange has accessed the funds and accounts of the customers. It has no intention of repaying to the customers. The prosecution is pushing ahead with the charges as the ruling is held in the Tokyo District Court.

Mark Karpeles Pleads Innocent in The Disappearing of The Mt.Gox Funds

However, the French man is defending himself that funds of 350 million yen collected from the users is a loan. It will be repaid to the users. His claim is refuted by the prosecutors due to lack of proper documentation. They are arguing that the 33-year-old has no intention to repay the sum. According to the prosecution, he has escaped with funds worth $3 million. He is also charged with changing the crypto exchange data after the trial held in July 2017. The Tokyo Persecutors has argued that French man acts are vicious. It has caused complete loss of confidence in the trading.

He claimed that he is unaware of the disappearance of funds and no role in the hack. He said he is innocent. However, the court is not intending to find out details that lead to the hack. The court will not specify those details in the judgment.

Mt. Gox Files for bankruptcy in April 2014

Mt. Gox has submitted an application for liquidation in April 2014 after the users claimed loss of 1 million Bitcoins in the hack. The cryptocurrency exchange has lost digital currency worth $500,000 from the virtual vault. It has shut down the operations after admitting the huge loss of coins.

The exchange has said ?Hackers gained access into the system due to a bug in its software?. However, Mark Karpeles has informed that 0.2 million coins are found in the cold wallet.

Mt. Gox has been conducting over 80% of the cryptocurrency transactions in the world. It has to file for bankruptcy after the angry investors wanted answers for the loss of cryptocurrency.

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