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Offset kept the party going after crashing Cardi B’s set with a second birthday bash for himself, where he covered up his face … but not in shame or anything. Quite the opposite. After ambushing Cardi’s Rolling Loud set Saturday and begging…
It’s not only a Michigan man who could face life in prison after a woman’s mutilated body was discovered in the apartment building he owns. Jared Chance’s parents—including a father who worked as an Illinois police officer for 25 years, per WWMT —could face the same fate if convicted…
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.
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.
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.
“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.
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A New Mexico couple is facing charges after an unsupervised 3-year-old boy accidentally shot his 8-month-old sister in the face Saturday while the children’s mom and her boyfriend were in the shower, police said.
A British Conservative Party official says Prime Minister Theresa May will face a no-confidence vote from party lawmakers.
British Prime Minister Theresa May delayed a critical parliamentary vote on her Brexit bill, throwing both her government and her plans for the U.K.’s EU exit into disarray. The pound dropped to its lowest level in more than a year on the news.
WSJ.com: What’s News Europe
A study has found that women may be at an increased risk for developing breast cancer for years after giving birth. Per CNN , the study out of the University of North Carolina at Chapel Hill found that one factor tied to higher risk for the disease is having had a…
The use of biometrics to identify air travelers is expanding, with the world’s largest airline launching a program that uses facial recognition technology for some fliers at Los Angeles International Airport.
American Airlines has begun using facial recognition cameras on a 90-day test basis to…
Node40, a developer of bitcoin tax-reporting software, expects the U.S. Internal Revenue Service (IRS) to receive a record number of cryptocurrency-related tax return claims this year, as it predicts that many investors will decide to declare their losses.
Pros and Cons of Reporting
Cryptocurrency traders hit by considerable price declines in 2018 now have a strong incentive to report their activities to the authorities, in order to offset their losses against other tax liabilities. However, Node40 warns that doing so could have long-term consequences for investors. For example, if an individual reports particularly high losses, they may be questioned about where the money came from to begin with.
“It is clear that, with the huge falls in cryptocurrency markets during 2018, many people will be weighing up whether this is a good opportunity to reveal the losses they have suffered,” said Perry Woodin, co-founder of Node40. “Having not reported their crypto activity up to now though, those choosing to reveal losses this year will need to report their crypto positions every year from now on, giving the tax authorities much better visibility of people’s crypto involvement.”
What You Need to Know
Reporting taxes based on inaccurate calculations in the U.S. could result in penalties of up to 40 percent and tax courts often place the burden of proof on the individual rather than on the IRS. So it’s important that people who choose to report this year have written records of all transactions they took part in, including accurate gains or losses, as well as proper cost basis assignments. If you use accounting software to generate these documents, make sure that it can recover historical trade activity from all the exchanges and wallets you have ever used.
“There is a lot for individuals to consider when it comes to crypto accounting and their tax returns,” said Sean Ryan, co-founder of Node40. “For example, ‘hodlers’ will have a completely different set of circumstances to traders, while those receiving crypto from forks and then selling will also have a unique situation to deal with.”
Is reporting crypto losses worth the risk? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.
The post IRS to Face Record Number of Loss Claims, Says Crypto Accounting Firm appeared first on Bitcoin News.
The Latest on France protests (all times local): 1 p.m. French left-wing opposition parties are seeking a no-confidence vote in President Emmanuel Macron’s government amid growing protests and fears of violence.