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Chief of bitcoin exchange Mt. Gox denies embezzlement as trial opens

Chief of bitcoin exchange Mt. Gox denies embezzlement as trial opens

TOKYO (Reuters) – The 32-year-old director of the late Mt. Gox pleaded guilty Tuesday on charges related to the loss of hundreds of millions of dollars and bitcoins cash from what was the world’s largest bitcoins exchange.

The French national Mark Karpeles introduced the statement in response to allegations of misuse and manipulation of data in the Tokyo District Court, according to a pool report for foreign journalists.

Mt. Gox has achieved 80% of the bituminous oil world trade, but was declared bankrupt in 2014 after losing about 850,000 bitcoins, accounting for about one billion US dollars and cash of 28 million of its bank accounts .

In its bankruptcy filing, Mount Mt. Gox blamed hackers for lost bitcoins, indicating a software security flaw.

Mt. Gox then stated that he had found 200,000 bitcoins missing.

Karpeles was accused of transferring 341 million yen ($ 3 million) from a mountain. Gox account of holding the client’s funds in an account in his name from September to December 2013. The indictment also alleges that Karpeles increased the balance of an account to his name on Mt. The Gox trading system.

In his opening address, the Karpeles defense team did not argue that the transfers took place, but they refused to constitute embezzlement.

Karpeles told the court that he was an IT engineer.

“I swear to God I’m innocent,” he said in Japanese in the three judges who met his case committee, such as the group’s report.

Mark Karpeles, general manager of the deceased Bitcoin Stock Market Mt. Gox, participates in a press conference after a suit against embezzlement in Tokyo, Japan, July 11, 2017.
Toru Hanai
License exchanges

The collapse of the mountain. Gox has seriously damaged the image of virtual currencies, especially among investors and Japanese companies that have risk aversion.

But bankruptcy has also led the Japanese government to decide to deal with the preceded bitcoin and pressure from local regulators to allow virtual currency changes.

Presentation (5 Photos)
Japan, this year became the first country to regulate trade at the national level, as part of a government effort to exploit financial technologies as a means to stimulate the economy.

Interest in legato bitcoine among Japanese individual investors – encouraged by the recognition of virtual currency as Tokyo’s legal tender – has increased in recent months.

However, institutional investors remain cautious, for example those who run the virtual currency trading in Tokyo. Japanese companies are not enthusiastic: only 4 percent. 100 large and medium-sized companies plan to use short- and medium-term bitcoin, according to a Reuters poll showed last month.

The value of the bitcoine is very volatile. It reached a record $ 2,980 last month.

Like other virtual currencies such as Etereum and Ripple, Bitcoin has no central authority and is based on thousands of computers around the world that validate transactions and add new drives to the system – known technology blockchain name.

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