Mt.Gox founder Mark Karpeles Sentenced to Over Two Years. Is This a Joke?

[wwzsocki]

The courts found Karpeles guilty of “illegally producing electronic records” in connection to Mt. Gox’s books and were given a sentence of two years and six months.

He was not found guilty of embezzlement and aggravated breach of trust.

According to the Wall Street Journal, if Karpeles remains on “good behavior” over the next four years he won’t serve prison time.

At the time of the hack, losses were pegged at 850,000 BTC—consisting of 750,000 customer bitcoins, 100,000 of the exchange’s own and worth approximately $500 million. Two hundred thousand bitcoins were later “found” by the company in an old hot wallet, bringing the number down to 650,000 BTC still lost in total.

Karpeles eventually stood trial in 2015, but not on account of the theft. Instead, he was charged with faking trading information at Mt.Gox over “several years” and embezzling $3 million in customer funds deposited with the company.

Reception to Karpeles’ sentence on social media is mixed. Some in the community are satisfied that he was “brought to justice” as the executive responsible for Mt.Gox when the exchange was hacked, while others have voiced concerns with the relatively light sentence considering the impact it had on the Bitcoin ecosystem.

This is what I have expected they found him guilty but he will not spend even an f.....g second in prison!!! This is the justice we have today. I am really mad because I have lost a lot of BTC by Mr.Gox and was sure that Karpeles would have the pleasure to bend down for soap for several years in the prison shower surrounded by horny fellow convicts.

I still believe that Karpeles has robbed Mr.Gox because he was unable to cover his crazy investments, like a bitcoin cafe. Why he faked trading info and took millions from his clients?

Many people pointed out that a few days before the hack when they offered him help with security measures (that were known by insiders to be weak) Karpeles seemed to be completely elsewhere, he could not focus and only talked about his new abstract investment the BTC cafe. He was even not prepared and has to buy a laptop from a computer store on the corner to be able to work with these guys. Imagine that he had an appointment with security specialists who were worried about the safety of his exchange and flown to Japan from another corner of the world and he even didn't take his laptop? I don't use names at purpose but these facts are easy to confirm using google search.

I want to know your opinions on that court sentence and generally the entire case of Mr.gox and Mr. Karpeles.

https://cryptoslate.com/founder-of-hacked-bitcoin-exchange-mt-gox-mark-karpeles-sentenced-to-over-two-years/

[xWolfx]

It's pretty interesting to be rich and powerful.

If you steal a couple of fruits you will go to jail and he stole a lot more than that. I wasn't affected since i don't have much at the moment first and second i don't like exchanges but yeah that was pretty interesting to see.

Of course it is a really light sentence, really really light one.

[CryptoBry]

"This is what I have expected they found him guilty but he will not spend even an f.....g second in prison!!! This is the justice we have today. I am really mad because I have lost a lot of BTC by Mr.Gox and was sure that he would have the pleasure to bend down for soap several years in the prison shower."

I am sad to hear that actually because to me this is not the kind of justice that many victims expected. Right now, those victims has no viable recourse but to respect what the court has already decided. This can be a big signal to many others in this industry to just take things normally as it can be easy to get away from unethical behaviors as long as you have the money to defend yourself. As an industry, we should be united in kicking people like this man as they are the ones destroying the name, reputation and the future we should be sharing.

[Fola3la3]

Correct. That was a debt Mark could have paid back in a few months running the exchange. Both men admitted it during the Mt Gox interviews by Peter McCormac in the "What Bitcoin Did" podcast, which I highly recommend.

[wwzsocki]

...Of course it is a really light sentence, really really light one.

Correct...Both men admitted it during the Mt Gox interviews by Peter McCormac in the "What Bitcoin Did" podcast, which I highly recommend...

...As an industry, we should be united in kicking people like this man as they are the ones destroying the name, reputation and the future we should be sharing.

I see that everybody agree that this sentence is just a joke.

Literally, I know a case where a guy was sentenced two years of prison for stealing bread from the bakery.

How does this apply to the judgment of Karpeles?

[poptok1]

If it's somehow makes you more comfortable with this outrageous sentence, bear in mind that he was serving seven months in solitary confinement, before the investigators could build the case. Japan has quite draconian pre-trail "waiting rooms" , they look like supermax prisons in the US.

I'm aware that this is nothing of an excuse, however no solid evidence of his direct involvement in a hack was found.
“The charge of electronic record tampering is true and deserves punishment, but there’s no criminal evidence of embezzlement,” the court said in final verdict. At the least his reputation is destroyed.

[Indamuck]

White collar criminals often get very lenient sentences.  Unless you screw over other wealthy rich people like Bernie Madoff they just don't care.  I'm sure the hack was an inside job and completely fabricated.  Using hack is one of the easiest excuses to get away with because its difficult to prove if you are lying.

[kryptqnick]

I think the years in prison don't matter much. The sentence, though, probably shows the attitude towards crypto holders. I bet if someone robbed a bank there would not have been such mild measures under any circumstances. And here the court is telling us: should've kept your money in fiat in banks, we do give a shit about crypto investors!
Anyway, I think the judge should have fined Mark for at least half of the money people lost on the exchange and make him pay it our to former users, say, in fiat equivalent of what they lost back then. This is really unfair.

[StackGambler]

If it's somehow makes you more comfortable with this outrageous sentence, bear in mind that he was serving seven months in solitary confinement, before the investigators could build the case. Japan has quite draconian pre-trail "waiting rooms" , they look like supermax prisons in the US.

I'm aware that this is nothing of an excuse, however no solid evidence of his direct involvement in a hack was found.
“The charge of electronic record tampering is true and deserves punishment, but there’s no criminal evidence of embezzlement,” the court said in final verdict. At the least his reputation is destroyed.

Interesting. Most people seem to underestimate the power of solitary confinement. Everyone should try forcing themselves to be shut in a room, alone, with no human contact (even online) for 2 days to see how truly devastating it is. I tried it and barely lasted a single day. Seven months must be absolute torture.

[franky1]

Japan has quite draconian pre-trail "waiting rooms" , they look like supermax prisons in the US.

ever been to asia?
you will find that the prison cell is actually bigger than most asian hotel rooms.
asia (mainly japan) are known for their minimalist design

[Artemis3]

If it's somehow makes you more comfortable with this outrageous sentence, bear in mind that he was serving seven months in solitary confinement, before the investigators could build the case. Japan has quite draconian pre-trail "waiting rooms" , they look like supermax prisons in the US.

I'm aware that this is nothing of an excuse, however no solid evidence of his direct involvement in a hack was found.
“The charge of electronic record tampering is true and deserves punishment, but there’s no criminal evidence of embezzlement,” the court said in final verdict. At the least his reputation is destroyed.

You think that's bad? Look at the alternative:

A typical "cell" in "socialist" Venezuela, yeah, you have to "share" it... Political dissident? Too bad you go in with the murderers and rapists, and you better learn their rule and become their subordinate quick, or else... Once your term ends (if you survive) you'll be part of the gang and ready to go out and kill or be killed for your new boss.

We call them crime college for a reason. Most gang leaders do "reside" inside, and you wouldn't believe what they can do with their ill gotten money... Casinos, night clubs, brothels and even jacuzzis and a zoo, but that's for them alone, the rest of the subordinates go here:


If its anything like you say, being held in a "supermax"; he has been in a private suite all this time. TV? private toilet?, an actual toilet and not a hole in the ground? a bed!? You mean he won't have to fight rats and cockroaches for sleep? Hah.
BTW: That info-graphic must be ancient, not only it is hard to find CRTs, B&W CRTs vanished before the 21ist century.

Don't worry, in two years and half a new rich man will walk freely with a fortune in bitcoin. A few years in "confinement" is nothing next to a wealthy retirement...

ever been to asia?
you will find that the prison cell is actually bigger than most asian hotel rooms.
asia (mainly japan) are known for their minimalist design

Capsule hotels are heaven next to a typical hong kong cage bed:



You guys live in paradise, you just don't know it...

[100bitcoin]

Japan has quite draconian pre-trail "waiting rooms" , they look like supermax prisons in the US.

ever been to asia?
you will find that the prison cell is actually bigger than most asian hotel rooms.
asia (mainly japan) are known for their minimalist design

LMAO. No. That's not a standard Asian hotel room.

Let me google that for you.

[Mr.Ease]

I know someone might disagree, but I feel pretty bad for Karp.
I think he wanted to create something valuable for the bitcoin community and it got way larger than he could manage.
He was in too deep, bitcoin prices exploded and then his product wasn't prepared for all the hacking interest.

Yeah he made some bad choices... I just feel anyone could have ended up in the same shoes.
We can only learn from Mt Gox failures...

[Clairvoyant]

What a ridiculous outcome. It's a real message from the courts about their attitude to the crypto investor.

So basically he's gotten away with it.

[poptok1]

You think that's bad? Look at the alternative:
-snip-

No, I'm not saying this is bad, inhumane, horrible or anything like that, although he was also interrogated for many, many hours straight.
All I was trying to say is that he was imprisoned for long time in a place that is far worse then regular jail cell.
Now imagine that Venezuelan prison but with one difference, solitude. Stone cold walls and you, nothing else but maybe droplets of water splashing here and there... I say madness in 3..2..1..

-snip-
ever been to asia?

   
Unfortunately no, I wasn't lucky enough. But we cant compare honeycomb hotels, which are voluntary and usually with lot's of other guest as a company, to involuntary solitary prison cell, no matter how small.

[Lucius]

According to the Wall Street Journal, if Karpeles remains on “good behavior” over the next four years he won’t serve prison time.

This is not justice, this is a joke of the legal system, and it just show that we are not equal before the law. A fair punishment would be that all his property / money was taken away, and to use that to compensate users of Mt.Gox. After that he should be permanently banned for any a job related to finance. The way in which the whole case is handled just shows that justice even in Japan is slow and quite incapable to at least return that part of the money that has remained.

Those who are the most damaged will pay the highest price like always, same as in case of financial crisis 2008 - the rich have become richer, and the poor got poorer.

[dothebeats]

I think he got off pretty lightly, or extremely lightly for that matter. He has been in solitary confinement for quite some time now though I don't think that justifies what happened to his supposed sentence. White-collar criminals seem to be getting off the hook pretty lightly compared to those below the ranks of hooligans and your average thief, and Karpeles is a prime example for that. This is just saddening but what else can we do if the verdict is already out there?

[Kemarit]

I have to agree with others posters here, Karpeles can get off the hook and it looks like there's no justice. I don't know how Japanese court not find him guilty of embezzlement though, it still baffles me. Anyhow, the decision has been handed down already, and the timing though. Would you imagine him walking out in two years and coincidences when Bitcoin will then be on another bull-run? How lucky Karpeles, walking out from the jail, and walking out very rich again.

[mich]

Not to get too off topic but some countries offer some dang nice prisons.
For those of you thinking he got a light sentence, please watch this short video to see some of the nicest prisons worldwide-
https://www.youtube.com/watch?v=-x3-5oXoevM

[StackGambler]

I have to agree with others posters here, Karpeles can get off the hook and it looks like there's no justice. I don't know how Japanese court not find him guilty of embezzlement though, it still baffles me. Anyhow, the decision has been handed down already, and the timing though. Would you imagine him walking out in two years and coincidences when Bitcoin will then be on another bull-run? How lucky Karpeles, walking out from the jail, and walking out very rich again.

What's funny is that he isn't even getting two years in prison. It's contingent on him fucking something up in the next four years, which, if he isn't as retarded as I think he is, he's not going to do.