Head of Defunct Bitcoin Exchange Pleads Not Guilty to Fraud Charges

By:
Chris Gaetano
Published Date:
Jul 11, 2017
bitcoin_small

Mark Karpeles, the former CEO of the now-defunct Bitcoin exchange Mt Gox, has pleaded not guilty to embezzlement and data manipulation charges that Japanese authorities leveled at him in the wake of the exchange's spectacular collapse in 2014, according to the Guardian. Prior to collapsing, roughly 80 percent of all Bitcoin transfers flowed through Mt Gox before the company, claiming it had been hacked, lost about 850,000 of the digital currency―equivalent to about half a billion dollars at the time―as well as $28 million in cash from its bank accounts in Japan. While later it said it was able to recover 200,000 of the lost Bitcoins, by that point the damage had been done, with those who lost their money attempting to recover their losses to this day.

Karpeles was arrested in 2015 and released on bail. If found guilty of embezzlement, he could face up to five years in prison and a fine of 500,000 yen (about $4,000). 

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