Mt. Gox CEO Mark Karpeles cleared of embezzlement charges

Mt. Gox CEO Mark Karpeles cleared of embezzlement charges

When Karpeles claimed to have recovered a fourth of the 850,000 lost bitcoins, authorities questioned the accuracy of his statements. He was then indicted on a slew of charges -- he's been on trial for embezzlement since 2017 -- with prosecutors calling for at least 10 years of jail time. Now, the Tokyo District Court has determined that the former chief acted without ill intent: he apparently used his personal finances to tamper with the exchange's accounts and hide the fact that Mt. Gox lost a massive amount of money to hackers.

While the court didn't find evidence of embezzlement against Karpeles, it still reminded him in its ruling that what he did was a "massive harm to the trust of his users." The court's decision added: "There is no excuse for the defendant, who is an engineer with expert knowledge, to abuse his status and authority to perform clever criminal acts."