Why MTGOX CEO Mark Karpeles doesn't get charged or jailed

[McKinley]

Why MTGOX CEO Mark Karpeles doesn't get charged or jailed:

• Charlie Shrem got jailed for the accusation of money laundering $1 million (1)
• MTGOX malversated $574.2 million -
  BTC 850.000 - at current BTC-e.com price=$571.2 million (2) and ~$3 million in fiat - claiming as an excuse - they have been robbed.
• CEO Mark Karpeles blames a theft possibility known since 2011 with an update in 2012(5). He - a Bitcoin Foundation Member - proclaimed on MTGOX homepage it was most secured by AKAMAI technology(6)
• despite a leaked crisis strategy draft(4), MTGOX continued trading and allowed requests for fiat payouts for 3 weeks. One of the last payouts was received on Feb 25th(3)
• despite Mark Karpeles announcing he is working together with government officials already days after BTC payouts of mtgox got stopped(7), MTGOX continued .... (see above point) and Karpeles was kept in charge of MTGOX.
  
• MTGOX continuously lied to its customers, calming the situation and pretending to reopen payouts

.
When

• bank clerks leave all doors and the vault open they are either charged as an accomplice or being grossly negligent.
• an employee is even suspected to be involved in fraud he is immediately suspended to not be able to cover his tracks.
• a bank with a drilled hole in their vault is still accepting payments claiming to be secure, the managment is charged with fraud or gross negligence.

Why has neither happened to MTGOX? No one has been denied access to their systems or jailed. In the U.S. federal prosecutors aren't having these pardon's. Is the protection of Mark Karepeles and his management staff due to the Japanese legal system being lame, slow or incompetent? Because it is not Japanese habit to charge big players? Fukoshima?
Can a management be that clueless to let so much money get stolen over such a timeframe? If someone knew, instigated or let it happen, he was now given enough time to cover his tracks. And will - after all is over -get a huge kick back payment.

Why is none of the MTGOX management team yet charged or jailed?





Sources:
(1) http://www.nydailynews.com/new-york/bitcoin-champ-charged-funding-drug-shop-article-1.1593656
(2) http://www.reddit.com/r/Bitcoin/comments/1zezhs/new_announcement_on_mtgox_site_mar_3_2014/
(3) https://bitcointalk.org/index.php?topic=179586.msg5415549#msg5415549
(4) http://de.scribd.com/doc/209050732/MtGox-Situation-Crisis-Strategy-Draft
(5) https://bitcointalk.org/index.php?topic=458074.msg5058441#msg5058441
(6) http://mtgox.com until at least Jan 31st - I can't get any screenshots any more from the wayback machine archive.org - it looks like it got thrown out.
(7) This is just by my knowledge, i haven't found the article - sorry.

[1715659984]

1715659984

[Totscha]

1. Charlie Shrem is in house arrest the last time I heard. Not jailed.

2. He was arrested almost 4 months after the closure of Silk Road. It took the investigators this long to link Silk Road funds to him and prepare a case against him. Not too long if I come to think about it.

3. Mt.Gox and Karpeles are under investigation in 3 countries US, Japan and Poland.

4. Investigations take time. You can't throw people in jail for suspicion.

5. Does throwing him in jail help the users to recoup their loss? Confiscating his assets and maybe a hefty fine on top seems a more apropriate action IMHO.

[HeadsOrTails]

1. Charlie Shrem is in house arrest the last time I heard. Not jailed.

2. He was arrested almost 4 months after the closure of Silk Road. It took the investigators this long to link Silk Road funds to him and prepare a case against him. Not too long if I come to think about it.

3. Mt.Gox and Karpeles are under investigation in 3 countries US, Japan and Poland.

4. Investigations take time. You can't throw people in jail for suspicion.

5. Does throwing him in jail help the users to recoup their loss? Confiscating his assets and maybe a hefty fine on top seems a more apropriate action IMHO.

All the lost BTC is a combination of 3 things IMO:
1. US Govt seizure in association w SilkRoad (it was the only exchange really used at that time after all)
2. "lost" private keys (be it incompetence or stolen by employees, or both)
3. Transaction malleability bug slowly chipping away - highly likely since MtGox used a txid as their receipt for trades

[Totscha]

1. Charlie Shrem is in house arrest the last time I heard. Not jailed.

2. He was arrested almost 4 months after the closure of Silk Road. It took the investigators this long to link Silk Road funds to him and prepare a case against him. Not too long if I come to think about it.

3. Mt.Gox and Karpeles are under investigation in 3 countries US, Japan and Poland.

4. Investigations take time. You can't throw people in jail for suspicion.

5. Does throwing him in jail help the users to recoup their loss? Confiscating his assets and maybe a hefty fine on top seems a more apropriate action IMHO.

All the lost BTC is a combination of 3 things IMO:
1. US Govt seizure in association w SilkRoad (it was the only exchange really used at that time after all)
2. "lost" private keys (be it incompetence or stolen by employees, or both)
3. Transaction malleability bug slowly chipping away - highly likely since MtGox used a txid as their receipt for trades

I don't disagree with you in any point. These are all likely causes of their losses.

But I don't see the point you were trying to make. Maybe that Mark is not to blame?

He surely is to blame. He may not be an outright thief. But there is such a thing as criminal/gross negligence. So he may not be prosecuted in a criminal court and jailed. But he can most certainly be sued in a civil court and forced to pay the loses from his pocket.

[McKinley]

1. Charlie Shrem is in house arrest the last time I heard. Not jailed.

Maybe now - but first he was jailed. If a judge then decides house arrest is enough, it's a follow-up decision.

4. Investigations take time. You can't throw people in jail for suspicion.

Yes you can - look up in google: "jailed for suspected"/"suspicion". If you give a suspected bank robber time until the robbery is investigated, he gets the time to cover his tracks and the money plus himself will be gone.

5. Does throwing him in jail help the users to recoup their loss? Confiscating his assets and maybe a hefty fine on top seems a more apropriate action IMHO.

Neither does keeping him out of jail help the users recoup their loss. Neither does throwing a bank robber in jail help the bank recover its loss.
The reasons are different:

• he is unable to cover any of his tracks
• the public gets protected from any of his future intentions
• it scares off future criminals
• and a little thing called justice: People go to jail for much smaller amounts.

[McKinley]

One thing for sure: MTGox will be among the TOP 3 of biggest robberies raids and heists ever.
http://list25.com/25-biggest-robberies-raids-and-heists-ever/?view=all