July 10, 2017 / Law

In Japan Starts The Trial Of MtGox Founder Mark Carpeles

Mt_Gox_CEO_Mark_Karpeles

This week the former head of the Bitcoin exchange MtGox, Mark Carpeles, will stand trial in Japan for charges of theft and squandering hundreds of millions of dollars. 

32-year-old French entrepreneur was the founder of the exchange MtGox, through which in 2011-2013 there was a significant amount of traders. In many respects thanks to the activity of MtGox, the price of bitcoin in that time overcame for the all time high $ 1000, however, with the collapse of the exchange, it quickly dropped.

MtGox based in Tokyo and at a certain stage was the largest trading platform in the bitcoin ecosystem. The degree of dominance of MtGox in full say simple numbers: the exchange took about 70% of all transactions with cryptocurrency.

In early 2014, MtGox, against the backdrop of accusations of a dirty game, stopped operating. Mark Carpeles himself later claimed that the platform had undergone a hacker attack. But the Japanese company WizSec research, published in April 2015, showed that MtGox started withdrawing funds as early as 2011, and by 2013 there were practically no funds on the cryptocurrency exchange accounts.

The losses of MtGox investors estimated nearly 850,000 BTC. At that time, this amount was about $ 480 million, at today’s market rate it is about more than $ 2 billion.

In August 2015, Karpeles was arrested, and after a while he was formally charged with theft and embezzlement of investors’ funds. However, less than a year later – in July 2016 – Karpeles was at large, paying a bail of 10 million yen. Under the terms of the deal with the authorities, Karpeles forbidden to leave Japan, he also refused any communication with the press.

Representing the interests of the French lawyer Kiichi meanwhile said that Karpeles intends to insist on his innocence.

In addition, in the role of an intermediary in the investigation of the circumstances of the bankruptcy of MtGox is the Kraken exchange. In 2016, the ctyptocurrency exchange announced the completion of the review and determination of the status of all customer claims regarding the recovery of stolen funds.

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