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Former Mt. Gox CEO Could Face 10 Years in Jail Over Embezzlement

December 12, 2018 |

Former Mt. Gox CEO Faces 10 Years in Jail Over Embezzlement in Japan

Japanese prosecutors are seeking a 10-year jail term for Mark Karpeles, the former CEO of Mt. Gox. The embattled Frenchman, who has been previously accused of diverting company money for prostitutes, business acquisitions and luxury items, is facing charges of transferring $ 3 million of client funds to his own account for investment in a software development business.

Also read: Netherlands to Regulate Cryptocurrencies in Bid to Curb Money Laundering

Karpeles Pleads Innocence But Authorities Aren’t Buying It

According to prosecutors, Mark Karpeles falsified Mt. Gox’s trading system to make customer balances appear healthier than they in fact were. He also acted in violation of the country’s corporate law, Japanese daily The Mainichi reported on Dec. 12.

Former Mt. Gox CEO Could Face 10 Years in Jail Over Embezzlement

Karpeles has sworn his innocence and says the money, moved in the last four months of 2013, was meant to serve as only a temporary loan. He also argued, earlier in the trial, that the funds in question did not belong to clients but were his now-defunct company’s revenue.

However, prosecutors have argued there is no evidence that this diversion of funds was merely as a temporary loan. “There was no documentation of loans and there was no intention of paying back,” reads their submission at the Tokyo District Court. Karpeles, prosecutors argue, must be slapped with a harsh sentence for betraying the confidence of investors who trusted him with their money.

The Great Bitcoin Heist

Mt. Gox went from handling 70 percent of global bitcoin trades in 2013 to bankruptcy in 2014 after about $ 400 million was supposedly lost to hackers, with 200,000 bitcoins recovered two weeks later. The current lawsuit is not investigating the cause of this theft.

As the effects of the discrepancy became apparent, the exchange initially delayed withdrawals for up to three months before completely ceasing them altogether, ostensibly over the theft of bitcoins. The company entered bankruptcy proceedings in 2014 but has since undergone civil rehabilitation processes to enable it to pay bitcoin still owed to investors. It has yet to be determined how much users will be repaid, given the numerous fluctuations in bitcoin’s trading price since 2014.

Former Mt. Gox CEO Could Face 10 Years in Jail Over Embezzlement
Mark Karpeles

“I never imagined things would end this way and I am forever sorry for everything that’s taken place and all the effect it had on everyone involved,” Karpeles said earlier during the bankruptcy saga, although he has consistently maintained his innocence. In November, a Mt. Gox trustee sought to defer the deadline for filing civil rehabilitation claims, initially slated for October, until this month.

Regardless of how the matter plays out in Japan, Karpeles faces more legal trouble in the U.S. where former Mt. Gox clients filed a lawsuit against him several months ago. Karpeles’ lawyers want the lawsuit dismissed on the basis that a U.S. court has no jurisdiction over the matter.

What are your thoughts on the Mt. Gox case? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

 

The post Former Mt. Gox CEO Could Face 10 Years in Jail Over Embezzlement appeared first on Bitcoin News.

Bitcoin News

Trump Says He Could Intervene in Huawei Case

December 12, 2018 |

Huawei CFO Meng Wanzhou is out on bail in Vancouver —and whether her next destination is her home in China or a cell in the US could be up to President Trump. In an interview with Reuters Tuesday, Trump said he would consider intervening with the Justice Department in the…
Newser

CNN

OPEC is meeting this week. Here’s what it could do

December 8, 2018 |

Six months ago, OPEC agreed to pump more oil to prevent prices spiking to $ 100 a barrel. Now the oil cartel is talking about cutting output to stop prices crashing below $ 50.
CNN.com – RSS Channel – World

Legal Pot Could Be Next Move for Marlboro Maker

December 5, 2018 |

The maker of Marlboro cigarettes is joining some of the biggest names in beer in exploring the budding cannabis marketplace. Altria Group Inc., which owns Philip Morris USA, is the latest big company to show interest in marijuana. Canadian medical marijuana company Cronos Group Inc. has confirmed talks with Altria…
Newser

California card club owners fear new gambling regulations could force them to fold on blackjack-type games

December 5, 2018 |

A single mother, Carolyn Uzeta worked her way up over 18 years from cocktail waitress at the Gardens Casino in Hawaiian Gardens to the card club’s manager of training and development.

“I saw gaming as something I could be good at,” Uzeta said as she dealt cards for blackjack poker, a variation…


L.A. Times – Business

‘Fairness Formula’ Could Redraw State’s Voting Map

December 3, 2018 |

The votes won’t be cast for another four years, yet Democrats already appear likely to gain seats in Missouri’s Republican-dominated Legislature in 2022. The reason: a one-of-its kind redistricting initiative approved by voters in the recent midterm elections. Missouri’s initiative marks a new frontier in a growing movement against partisan…
Newser

Thai SEC Explains Two Laws Could Apply to Crypto Securities

December 1, 2018 |

Thai SEC Explains Two Laws Could Apply to Crypto Securities

Thailand’s Securities and Exchange Commission (SEC) has reportedly clarified how existing laws can apply to crypto securities. In addition, Thai companies planning to issue securities tokens abroad would be guilty of wrongdoing under the Digital Asset Act for avoiding regulated fundraising channels.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Applicable Current Laws

Thai SEC Explains Two Laws Could Apply to Crypto SecuritiesOn Thursday, the Bangkok Post reported that Tipsuda Thavaramara, deputy secretary of the Thai SEC, revealed that “the regulator will have to consider how to deal with STOs [securities token offerings] for issues such as share ownership, voting rights, and dividends.”

Thailand enacted cryptocurrency regulation in May. The country’s Digital Asset Act regulates cryptocurrencies and initial coin offerings (ICOs) and installs the Thai SEC as the main regulator of the crypto industry. However, STOs are not included within the scope of any current laws.

The publication detailed:

If STOs have conditions similar to other fund-raising securities, they could undergo processes similar to those for IPOs, thus coming under the SEC Act … STO trading could fall under the Digital Asset Act if fund-raising is carried out in the same manner as for ICOs.

Thavaramara clarified, “At the moment, we have not decided whether STOs fall under the SEC Act or the Digital Asset Act,” adding that “it depends on the STO’s conditions and the details in its white paper.” She emphasized, “The SEC will have to consider carefully how to respond to each STO.”

Thai Company Plans STO Launch in the US

Thai cryptocurrency exchange operator Satang Corp. has announced a plan to launch its own STO in the U.S., the Bangkok Post also reported.

Thai SEC Explains Two Laws Could Apply to Crypto SecuritiesSatang Corp. operates a crypto exchange in Thailand called Satang Pro, formerly Tdax. The exchange has been granted temporary approval to operate in Thailand while its full application is being reviewed by the Thai SEC.

Thai SEC Explains Two Laws Could Apply to Crypto SecuritiesThe company “recently said it would issue an STO in the first quarter of next year but file for fund-raising with the US’s SEC and list on the T-zero exchange in the US,” the news outlet wrote on Thursday.

Overstock.com’s August filing with the U.S. SEC states that its Tzero platform aims to provide “current market participants the opportunity to access crypto-securities without having to incur switching costs.” The filing further describes, “Tzero represents a regulated bridge between the traditional securities markets and the fast-emerging world of crypto-securities.”

According to the Bangkok Post, Thavaramara explained:

An STO affiliated with Thai investors launching in an international market at this point would be guilty of wrongdoing under the Digital Asset Act. A company making such an STO launch would be trying to avoid regulated fund-raising channels, such as sales of ordinary shares or sales of digital assets via IPO portals.

What do you think of Thailand’s approach to regulating crypto securities? Let us know in the comments section below.


Images courtesy of Shutterstock, Satang Corp., Overstock.com, and Thai SEC.


Need to calculate your bitcoin holdings? Check our tools section.

The post Thai SEC Explains Two Laws Could Apply to Crypto Securities appeared first on Bitcoin News.

Bitcoin News

Some California evacuation orders could be lifted next week

November 29, 2018 |

Pacific Gas & Electric Co. said in a new filing with the state that it determined weather conditions were no longer dangerous enough to warrant a massive power shut off on Nov. 8 — a decision that came as a massive fire was tearing through a Northern California town.
FOX News

Murder Case Before Supreme Court Could Have Vast Implications

November 27, 2018 |

The Supreme Court grappled Tuesday with whether an Indian tribe retains control over a vast swath of eastern Oklahoma in a case involving a Native American who was sentenced to death for murder. Some justices said they fear a ruling for the Muscogee (Creek) Nation could have big consequences for…
Newser

CNN

Trump threatens iPhone tariff, could block China trade deal

November 27, 2018 |

President Donald Trump appears to be shutting the door on a temporary ceasefire in an ongoing tit-for-tat trade war with China just days ahead of an upcoming summit in Argentina.
CNN.com – RSS Channel – World