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March 01, 2014, 03:23:49 PM |
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There are some interesting issues at play here. PirateAt40's ponzi court case has not finished afaik, but a court in the USA ruled that bitcoins do have value (defendant was claiming they were worthless internet LOL coins). If a Japanese court sees things the same way it could cause trouble for MtGox's management.
A separate issue is trading while insolvent: regardless of whether MtGox was trading bitcoins, stamps, or cat turds, MtGox was still trading and taking new deposits when it was pretty clear that management knew the company was insolvent. This is a crime pretty much everywhere. The challenge for prosecutors will be showing the company was insolvent and tracking all the bitcoins and money. The law is against the CEO but he has complexity and novelty on his side: bitcoin may be complex and difficult enough to grasp for some aging judge that the whole thing slips through.
Either way, the CEO is going to fry. Either 750k+ bitcoins were stolen on his watch over a period of years (his words), which means negligence of criminal magnitude, or he has to show where the bitcoins went if they weren't stolen. He's screwed.
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