Former Mt. Gox CEO Appeal Rejected By Japan’s High Court, Two Year Jail Term Stands

  • Japan’s federal court rejects the former Mt. Gox CEO, Mark Karpeles’ appeal, upholding his two-year jail term.
  • The ruling sees the infamous Mt. Gox case stretch on as Mark’s attorney’s vow to reopen the case following an “unfortunate verdict.”

According to Associated Press report, a Japanese high court upheld a lower court’s ruling on the Mt. Gox saga, a crypto exchange that went bankrupt after 850,000 Bitcoins were hacked from the exchange. Mark Karpeles, the former CEO of the Japan based crypto exchange is the center stage of the case charged with manipulation of electronic data.

The lower court found the Frenchman guilty of manipulation of data sentencing him to two and a half years in suspended prison time – meaning he won’t serve jail time. The court also dropped two charges from the original prosecutions – embezzlement of funds and a breach of trust to the Mt. Gox users.

However, Karpeles appealed the ruling maintaining the hack was completely external and he had nothing to do with it. He believes the case on Mt. Gox will drag on for a decade before the root cause of the hack is established given the relatively new area of the crypto space back then.

The prosecutors at the district court had asked the court for a ten-year jail term for Karpeles following a class action lawsuit filed against him by former Mt.Gox users.

An innocent plea

The Namaste order from the high court however will not stop Mr. Karpeles attorneys from proving his innocence in the MT. Gox hack saga. The lawyers argue that the prosecutors misunderstand the overall working around a crypto exchange hence their continued pursuit over the CEO while he had nothing to do with it. The statement from Karpeles following the upholding of the guilty verdict read,

“Today’s verdict was unfortunate, and I am reviewing its contents alongside my lawyers and will decide how to proceed from there in the coming days.”

Currently, reports from Japan show that Mark Karpeles has launched Tristan Technologies, a blockchain based operating system much to the criticism and disdain of Mt.Gox users. One distraught user claims Karpeles is finding a way to clean his image and get back into the blockchain space.

This article is Originally posted on
Author: Lujan Odera

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