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| December 13, 2018

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Poacher Who Left Moose Meat to Rot Gets 9 Months in Jail

December 13, 2018 |

An Alaska man who poached three moose and left most of the meat to rot has been sentenced to nine months in jail and fined more than $ 100,000, the AP reports. Rusty Counts, 39, of Anchor Point, shot the moose near his community over two weeks in September. He…

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.

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

Bitcoin News

As Alleged Baylor Rapist Avoids Jail, Focus Turns to Judge

December 11, 2018 |

A Texas judge on Monday accepted a plea deal allowing a former Baylor University student accused of raping a woman at a fraternity party to avoid serving jail time. Judge Ralph Strother accepted the plea deal for Jacob Walter Anderson, who was indicted on sexual assault charges and pleaded no…


Carlos Ghosn is still in jail. Here’s why

December 5, 2018 |

Carlos Ghosn was arrested in Tokyo on suspicion of financial misconduct more than two weeks ago, yet the world hasn’t heard a word from the auto industry icon since. – RSS Channel – World

Minutes After He Escaped From Jail, Inmate Meets His Fate

December 5, 2018 |

An inmate who’d escaped minutes earlier from a county jail in South Carolina was shot and killed by a woman after he kicked in her back door, the local sheriff said. The inmate was still in his orange jail jumpsuit and had grabbed a knife-sharpening tool from the woman’s kitchen…

Her Kid Missed 5 Weeks of School. Mom Is Going to Jail

November 30, 2018 |

After a 6-year-old Michigan girl missed a bunch of school without the appropriate notes from home, the school tried to meet up with her mother to find out what was going on. After school officials say letters to Brittany Horton went unanswered and she didn’t show up to meetings, they…

Woman Spends Months in Jail Over Cotton Candy Mix-Up

November 25, 2018 |

Dasha Fincher had a bag of blue cotton candy in the car with her when two Monroe County, Georgia, sheriff’s deputies pulled the vehicle over on New Year’s Eve in 2016. The deputies—who said they pulled the car over because of its dark window tint, but allegedly later admitted…


Inmates Upset Tekashi 6ix9ine is Receiving Special Treatment in Jail

November 24, 2018 |

Tekashi69 has a knack for finding trouble … even behind bars. Sources connected to the prison facility where Tekashi is currently housed tell TMZ, a number of the inmates are pissed off at what they perceive as special treatment for the rapper.…

Rapper’s Gig Was Banned So He Performed on Car. Now, Jail

November 22, 2018 |

A popular Russian rapper was sentenced Thursday to 12 days in jail for performing on a car after prosecutors banned his gig. Husky, who has a wide following among young Russians with his videos scoring up to 6 million views on YouTube , was arrested Wednesday. A court in the southern…

Parkland Shooting Suspect Allegedly Attacks Jail Guard

November 14, 2018 |

The man suspected of killing 17 people at Parkland, Florida’s Marjory Stoneman Douglas High School in February allegedly attacked a guard in jail Tuesday night. It started when Nikolas Cruz, 20, was asked by a sergeant to stop dragging his sandals while walking around a dayroom, WSVN reports; Cruz then…