Now on Demand Ransomware Resilience & Recovery Summit - All Sessions Available
Connect with us

Hi, what are you looking for?



Ex-MtGox Bitcoin Chief Maintains Innocence in Trial Closing Arguments

Mark Karpeles maintains his innocence

Mark Karpeles maintains his innocence

The former head of collapsed bitcoin exchange MtGox apologised Thursday for losses that bankrupted the firm but insisted he was innocent of charges including embezzlement at closing arguments in his Tokyo trial, local media reported.

France-born Mark Karpeles, 33, faces charges that he pocketed about 340 million yen ($3.1 million) and fraudulently manipulated data related to MtGox.

His trial began in July 2017 and the Tokyo District Court is scheduled to announce a verdict on March 15 next year. He denies all charges.

MtGox — once the world’s biggest bitcoin exchange — collapsed in 2014 after cryptocurrency worth half a billion dollars disappeared from its virtual vaults, a mystery that remains unsolved.

In early December, Tokyo prosecutors demanded a 10-year jail term for Karpeles, claiming his alleged acts “were extremely vicious, as they completely undermined confidence in trading.”

Karpeles on Thursday apologised for failing to prevent the disappearance of the coins but insisted he was not guilty of the charges he is facing, public broadcaster NHK said.

Those charges are not directly related to how MtGox lost 850,000 bitcoin — worth around $480 million at the time.

MtGox was shuttered in 2014 after admitting the massive disappearance of the coins. The company initially said there was a bug in the software underpinning bitcoins that allowed hackers to steal them.

Advertisement. Scroll to continue reading.

Karpeles later claimed he had found some 200,000 of the lost coins in a “cold wallet” — a storage device that was not connected to other computers.

The French national — who cannot leave Japan as a condition of his bail — was originally arrested in August 2015.

MtGox, which once said it handled around 80 percent of global bitcoin transactions, filed for bankruptcy protection soon after the cyber-money went missing, leaving a trail of angry investors calling for answers and denting the virtual currency’s reputation.

Written By

AFP 2023

Click to comment


Daily Briefing Newsletter

Subscribe to the SecurityWeek Email Briefing to stay informed on the latest threats, trends, and technology, along with insightful columns from industry experts.

Join the session as we discuss the challenges and best practices for cybersecurity leaders managing cloud identities.


SecurityWeek’s Ransomware Resilience and Recovery Summit helps businesses to plan, prepare, and recover from a ransomware incident.


People on the Move

Bill Dunnion has joined telecommunications giant Mitel as Chief Information Security Officer.

MSSP Dataprise has appointed Nima Khamooshi as Vice President of Cybersecurity.

Backup and recovery firm Keepit has hired Kim Larsen as CISO.

More People On The Move

Expert Insights

Related Content


A recently disclosed vBulletin vulnerability, which had a zero-day status for roughly two days last week, was exploited in a hacker attack targeting the...


The changing nature of what we still generally call ransomware will continue through 2023, driven by three primary conditions.


As it evolves, web3 will contain and increase all the security issues of web2 – and perhaps add a few more.


Luxury retailer Neiman Marcus Group informed some customers last week that their online accounts had been breached by hackers.


Zendesk is informing customers about a data breach that started with an SMS phishing campaign targeting the company’s employees.


Patch Tuesday: Microsoft calls attention to a series of zero-day remote code execution attacks hitting its Office productivity suite.

Artificial Intelligence

The release of OpenAI’s ChatGPT in late 2022 has demonstrated the potential of AI for both good and bad.


Satellite TV giant Dish Network confirmed that a recent outage was the result of a cyberattack and admitted that data was stolen.