After finding the cofounder and Chief Executive Officer of the defunct Bitcoin exchange platform which went bankrupt in 2014, MtGox, guilt of some charges, a Japanese district court concluded the trial by handing Mark Karpelès two and half year jail term that will be suspended for four years due to the scandal which took place on his exchange.
Following the verdict, it was clear that the Judge answered Karpeles’ prayer in his ruling. While Karpeles, since the inception of the trial, has always claimed to be innocent of the charges, the court only indicted him of manipulating the company’s record to obscure some transactions as well as acting beyond his dominance.
The court debased the prosecutor’s accusation that Karpeles embezzled a sum of ¥341 million ($3,060,338 ) belonging to customers by transferring them to his account, charging the accused for only transferring about $33.5 million to an account operated by a Dallas based Bitcoin exchange across 21 transactions.
Leaving the image of the CEO unblemished, the court faulted Karpeles for using his computer to conceal the track of the transactions by falsifying the company’s records.
Due to the Karpeles’ expertise in IT engineering and the role he plays in the company, the mishandling of data was tagged by the court indefensible and unruly.
Even though the presiding Judge Tomoyuki Nakayama believes the manipulation of data mars the credibility of the exchange given the large amount of money involved, the judgment was still regarded as a major success for Karpeles since he was not found guilty of the embezzlement, and his jail term was slashed from 10 years to 21/2 years.
A report by Financial Times disclosed that the verdict, owing to the respect displayed and his countenance, seems to be at Mark Karpeles’ satisfaction.
“Mr. Karpelès, wearing a dark suit, bowed to the judge as he entered the courtroom.”