Japan 'charges MtGox baron Mark Karpeles with BTC embezzlement'

Former MtGox CEO Mark Karpeles has been formally charged with embezzlement by prosecutors in Tokyo, it is reported. Japan's public prosecutor brought the charges against French-born Karpeles on Friday, we're told. The Bitcoin exchange boss was arrested in August. According to the AFP newswire, Karpeles will now have the right …

[asdf]

You mean insiders are getting around the stringent internal controls of these Bitcoin yahoos? Color me shocked.

[Anonymous Coward]

Quality of the judges in Japan?

Hopefully the judge on his case knows how to advanced computer stuff like... use email. It would be a step up from some Australian judges... :/

[Turtle]

Another Speculative Venture.

Enjoyed the Bitcoin speculations? Here's something else suitable for speculation: how long before Karpeles is murdered on the orders of one of the defrauded Bitcoin owners?

[Anonymous Coward]

Re: Another Speculative Venture.

You've just invented assassination markets. (congrats?) There used to be one or two of these floating around the deep web, but I think they disappeared. The concept was that people would bet on the date someone was going to die, winner takes all. And of course surest way to know what date someone will die is to arrange it yourself, so the more people bet on it, the more tempting it will be.

[Turtle]

Re: Assassination Markets.

"You've just invented assassination markets."

I seem to recall that it was some sort of market that DARPA was running which was actually meant to predict the future by getting the opinions of experts on a subject to put their expertise where their mouths are and put some money on their expected outcome.

When the project became public knowledge (not that it was a secret project in the first place) DARPA had to shut it down.

[jonathanb]

The FT http://www.ft.com/cms/s/0/84311a60-5868-11e5-9846-de406ccb37f2.html#axzz3lTnpGcbW [paywalled link] has more information. He claims the money was used for legitimate business expenses, however I'm pretty sure client funds should not be used for business expenses, legitimate or otherwise.

[defiler]

Indeed, under UK financial regs (FCA), client funds must be ringfenced and are not to be used as operating capital. And having been in a place where there were rumours of that, it's taken very seriously. If you have knowledge (or even a strong suspicion) that it's going on and don't report it then you can be held culpable too.

Sometimes regulated financial markets are a jolly good thing.

[Anonymous Coward]

Mt. Gox was a card game trading site before they got into the Bitcoin stealing business (MTGOX = Magic The Gathering Online eXchange). Why did anyone trust them with their money? I bet they stole trading cards too.

And isn't the purpose of cryptocurrency for it to be decentralized anyway, meaning no central exchanges/banks in the first place?

[Pascal Monett]

So, 3 countries, 3 court cases

This guy is apparently a real bastard. When you've got a police file in 3 different countries (not counting speeding tickets, obviously), you shouldn't be allowed to be responsible for anything more than your car, to say nothing of a company.

[Gordon 10]

Re: So, 3 countries, 3 court cases

I think you mean 3 convictions in 3 countries, but I agree with the general point.