Former Mt. Gox exchange CEO Mark Karpeles has been released from prison

Former Mt. Gox exchange CEO Mark Karpeles has been released from prison

In an update from Japanese news station News24 Japan, former Mt. Gox CEO Mark Karpeles has been released from prison following a one year sentence which he just completed serving. The Mt. Gox bitcoin exchange infamously shut down in 2014 after losing 750,000 bitcoins.

After the Mt. Gox exchange shut down, the then CEO Mark Karpeles was later arrested in Japan on allegations that he manipulated exchange volume. After being found guilty, Karpeles was sentenced to one year in prison, which he just finished serving and is now out on bail.

In the video from News24 Japan, translated by Roger Ver, it says that after being held in custody for one year, he has been released on a $100,000 bail. For the bail conditions, he isn’t allowed to leave Japan. The Japanese prosecutors are accusing Karpeles of embezzling $3.4 million, which undoubtedly means he will be facing even more court battles and possibly more jail time.

Former Mt. Gox users have been in a long wait since the exchange shut down, working with another bitcoin exchange Kraken who took over the Mt.Gox liquidation to help former users get back some money they may have lost.

A few months ago in Japan, a new law passed that will require bitcoin exchange operators to register with the Financial Services Agency (FSA) in Japan, who will oversee the exchanges in order to help ensure better protection of users, presumably in response to the Mt. Gox fiasco.

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David is a writer, researcher, and developer who is passionate about bitcoin and blockchain. He writes for Bitcoin.com, Blockchain.com, and is the founder of Bitcoinx.io (which was acquired by Bitcoin.com). David previously used to write and curate for Myspace and has worked in the fintech and payments space for over 15 years.