Mt. Gox Founder Faces Japan Trial

Crime, FinTech, Investing, News | July 10, 2017 By:

Mark Karpeles, the head of the failed bitcoin exchange Mt. Gox, will appear in Tokyo District Court on Tuesday to face embezzlment charges.

Karpeles is charged with accessing the exchange’s computer system in February, 2013 and inflating his own account to $1 million. He was arrested in August, 2015 and has been out on bail since.

Mt. Gox suffered the biggest hacking in cryptocurrency history in 2014, resulting in several hundred million dollars in bitcoin being lost. Authorities recently claimed they discovered a cache of Mt. Gox coins, but have not reealed whether retrieving them is an option.

Karpeles has denied any malfeasance. The charges he faces carry a prison term up to five years and fines up to $4,000. The Mt. Gox collapse is not on trial, although observers are hoping to learn more about what happened and why.