Mt Gox CEO Mark Karpeles pleaded not guilty to misappropriation of other people’s funds
Mark Karpeles, manager of the infamous bankrupt Japanese bitcoin exchange Mt Gox, pleaded not guilty today on charges of embezzling funds and manipulating data, Reuters reports..
The trial took place today in Tokyo. Karpeles was accused of withdrawing $ 3 million of his clients’ funds to his own account in 2013 and forging his own account on the exchange platform. The 32-year-old defendant denied all charges.
Colin Burges, a London-based developer and lender to Mt Gox, also attended the meeting and tweeted: “Karpeles acknowledges the use of Willy’s bot … but he says it was in the best interest of the company and is therefore not breaking the law.”.
As it became known in 2014, the Willy bot was a mechanism for carrying out fraudulent trading on the exchange in 2013 during the rapid soaring of rates in the world markets..
The Japanese bitcoin exchange initially filed for bankruptcy protection from creditors in February 2014, when its debt was estimated at ¥ 6.5 billion ($ 63.6 million) in light of the loss of 85,000 bitcoins, which, according to Mt Gox’s explanation, disappeared due to a software vulnerability used by hackers.
This case became widely known because 75,000 of the missing bitcoins belonged to Mt Gox clients, and caused many to be surprised by raising legitimate questions about the safety, security and control of cryptocurrencies..
It is worth noting that this incident had a more positive impact on local markets as Japan became the first country in the world in April this year to impose control over bitcoin as a legal method of payment..
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