Mark Karpeles, the founder of the now-defunct bitcoin exchange Mt.Gox, was found guilty of tampering with records and given a suspended prison sentence of two years and six months.
The High Court ruling comes five years after a massive security breach in 2014 at Mt.Gox that led to millions of dollars in losses for both local and foreign bitcoin investors.
The courts found Karpeles guilty of "Illegally producing electronic records" in connection to Mt. Gox's books and was given a sentence of two years six months; He was not found guilty of embezzlement and aggravated breach of trust.
According to WSJ, if Karpeles remains on "Good behavior" over the next four years he won't serve prison time.
Mt.Gox periodically liquidates its bitcoin holdings to compensate customers in fiat amounts adjusted for 2014.
Last year alone, an exchange trustee sold over $230 million in tranches consisting of bitcoin and bitcoin cash.
Years after the crime, the hackers responsible for stealing bitcoins from Mt.Gox remains unknown.
In 2017, Japan, where Mt.Gox was headquartered, became the first major economy to legalize bitcoin trading.
Some in the community are satisfied that he was "Brought to justice" as the executive responsible for Mt.Gox when the exchange was hacked, while others have voiced concerns with the relatively light sentence considering the impact it had on the Bitcoin ecosystem.
Regardless of the public's opinion, Bitcoin has recovered from the catastrophe and new exchanges have filled the vacuum that Mt.Gox once occupied.
Founder of Hacked Bitcoin Exchange Mt.Gox Mark Karpeles Sentenced to Over Two Years
Published on Mar 15, 2019
by Cryptoslate | Published on Coinage
Mentioned in this article
Louis Vuitton Owner LVMH Is Launching a Blockchain to Track Luxury Goods
Luxury brand conglomerate LVMH, owner of the iconic Louis Vuitton label, is preparing to launch a blockchain for proving the authenticity of high-priced goods, CoinDesk has learned.
TrueUSD Stablecoin Holders Can Get 'Up to 8%' Interest Via CredEarn
Holders of the dollar-pegged stablecoin TrueUSD can now leverage their funds to generate returns under a new partnership between the token's developer TrustToken and crypto lender Cred.
Binance Tightens Compliance, Turning to IdentityMind for KYC
The world's largest cryptocurrency exchange Binance is moving to boost compliance and data security through a new deal with Medici Ventures portfolio firm IdentityMind.
E-Commerce Giant Rakuten Wins License for New Crypto Exchange
Japan's top financial watchdog has granted a license to a cryptocurrency exchange being relaunched by e-commerce giant Rakuten.