Japan Prosecutors Seeking 10 Years Imprisonment for Disgraced Mt Gox Bitcoin Exchange CEO, Mark Karpeles

Prosecutors in Japan today asked the courts to levy ten years imprisonment against Mark Karpeles, former CEO of Mt Gox, the largest early bitcoin exchange, Nikkei Asian Review reports.

Mt Gox folded in 2014 after $423 million in bitcoins and $247 million in cash went missing from exchange coffers in the final months of 2013.

Civil remediation proceedings began earlier this year as a trustee tried to return stolen bitcoins to harmed investors.

Karpeles has maintained his innocence, claiming the sums were lost in a hack or hacks.

But prosecutors claim he took almost $3 million dollars off the exchange for personal use and made no indication that he planned to return the money:

“There was no documentation of loans and there was no intention of paying back…His responsibility is severe.”

Japan prosecutors also accuse Karpeles of unlawfully manipulating accounts and doctoring exchange data. An additional charge of violating various Japanese corporate laws are also in place.

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