Topic: Mt.Gox founder Mark Karpeles Sentenced to Over Two Years. Is This a Joke? - page 2. (Read 831 times)
March 17, 2019, 02:06:01 PM
Any of you guys think that the verdict will be different if Mark Karpeles is tried in the USA for the same case? (embezzlement and illegal manipulation of accounting.) Just for the sake of argument, I think Mark will be given harsher punishment.
March 17, 2019, 12:12:28 PM
That is the truth, there were many shady things in the entire process...
From what I see the majority of You are against the court verdict and don't believe that Karpeles was not involved or innocent of the hack and lost of clients funds.
I just can't stand that Karpeles will be the head of a department in a big company making further his carrier and enjoy the life when hundreds of victims are left broke.
In April 2018 he become chief technology officer for the world's largest virtual private network (VPN) service, London Trust Media.
Karpeles should pay back all he has stolen especially if he can afford that. And he can from what we see above.
March 17, 2019, 08:21:17 AM
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 .
He just gambled with user funds and did nothing to safe guard the funds even with multiple warnings and by the end of the day the users lost all of their coins and their benefits for simply trusting them and depositing the amount, everyone started trading in Mt and i am sure everyone who deposited their funds during those period lost their coins and the long wait of when the funds will be returned continued till this day and he got scot-free free with a slight warning.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 .
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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?
That is the truth, there were many shady things in the entire process, getting hacked from their hot wallet in a period of time and in the end the trustee overlooking the sale of tokens started selling in open market and that impacted the market in 2017.
March 17, 2019, 05:31:57 AM
yes, it is a joke! someone don't want that he is taking the responsibility for his acting in the past.
March 17, 2019, 05:27:22 AM
If you go mug someone for $500, you go to jail. If you steal $500M, you don't get prison time. Such is the way of the world. Glad I didn't lose money over this (this was before my introduction to cryptos).
The only truth that matters is that centralized exchanges can't be trusted, and shouldn't be trusted.
True. Never keep a substantial amount in them. Onlyvuse them for trading or cashing out for fiat.
I'm not trying to deflect the accusation or the imply a different culprit, just trying to figure this whole thing out. Maybe we will never know the truth.
The only truth that matters is that centralized exchanges can't be trusted, and shouldn't be trusted.
True. Never keep a substantial amount in them. Onlyvuse them for trading or cashing out for fiat.
March 17, 2019, 05:14:02 AM
I really could feel the heaviness in your heart because you have been affected as a client by Mt Gox founder's unfair trial and verdict knowing the graveness of stealing hard earned money from the people in the form of cryptocurrency. You cannot help but post here your disgust how you feel over the verdict. Those comments who are a little bit bias do not feel how it is robbed with their hard earned money.
March 17, 2019, 04:49:53 AM
The 650 000 BTC are small in comparison to the damage that he done to the progress and adoption of Bitcoin.
This is true, not only he make a huge financial loss for thousands of investors, but this event has had a significant impact on public perception about what is actually bitcoin.
aren't these events inevitable though? when fidelity and bakkt are custodians for all of wall street's bitcoins, is it going to be better? what happens when they lose all the coins in their custody?
i see these custodial losses as part of a cultural learning process. most people---even most bitcoin users---don't appreciate the importance of securing their own coins.
when i got into bitcoin i was a trader first and foremost and i kept everything on exchanges. i paid dearly for it more than once and i don't make those mistakes anymore. i truly feel that people using exchanges as wallets are at fault and need to start taking responsibility for their own money. i don't believe in playing the victim. that's why i think blaming mark karpeles for the downfall of bitcoin is a cop out. bitcoin users being lazy and trusting and sending all their coins for someone else to hold is straight up bad behavior. we shouldn't keep justifying that shit. not your keys, not your coins.
March 16, 2019, 09:43:43 PM
It's the power of investor where who own more crypto asset, they can do anything.
That's can become the advantage or disadvantage on crypto but for me, as long as it's not affect to much, I can bear it.
Every people have their own tolerance actually
That's can become the advantage or disadvantage on crypto but for me, as long as it's not affect to much, I can bear it.
Every people have their own tolerance actually
March 16, 2019, 06:11:38 PM
It's an example of a white collar crime and those usually get punished very lightly. There are of course cases that were intentionally hyped and ended with extremely harsh sentences to scare off followers, like Madoff, but the majority ends with <5 year sentences. It's worth it to cheat people and run fraudulent businesses if you're ready to sacrifice a few years of your life for a few million USD. The prison diet serves Karpeles well, he looks much better than 2 years ago.
Japanese judges have a 99% success rate in sentencing criminals, Karpeles is simply not a crook. He's negligient, naive (as he bought an exchange that was already insolvent) but he is being demonized for a crime he did not commit - Jed Mccaleb did. March 16, 2019, 06:10:56 PM
Just a thought, the bitcoins were stolen by someone who had admin privileges.
Jed McCaleb, who sold mt Gox to Karpeles 6 months before it collapsed, may still have had access to the admin username and password.
Jed McCaleb, who sold mt Gox to Karpeles 6 months before it collapsed, may still have had access to the admin username and password.
McCaleb sold it to Karpeles in early 2011. That's 3 years before it collapsed. Karpeles would have been crazy not to migrate to new wallets when he transferred ownership. IIRC according to the WizSec report, the Mt Gox private keys were compromised in September 2011.
I'm not ruling out the possibility that McCaleb could have been involved in some way, just pointing out those facts...
Bottomline of this story, the justice system is really not fair at all because of the technicalities that they always need to look at. Ordinary crypto users are the ones who are suffering in this kind of broken system. Better take care of your investments and do your own due diligence so it will not happen to you.
March 16, 2019, 06:04:14 PM
I'm not trying to deflect the accusation or the imply a different culprit, just trying to figure this whole thing out. Maybe we will never know the truth.
The only truth that matters is that centralized exchanges can't be trusted, and shouldn't be trusted.
It's not worth the risk anymore. We're at a stage where buying back Bitcoin isn't a matter of spending a few thousand anymore, but hundreds of thousands, or millions in case it concerns very large traders/investors. It's one of the main reasons OTC volumes continue to increase. Dex's have seen an uptick in volume too.
March 16, 2019, 05:21:55 PM
Just a thought, the bitcoins were stolen by someone who had admin privileges.
Jed McCaleb, who sold mt Gox to Karpeles 6 months before it collapsed, may still have had access to the admin username and password.
Jed McCaleb, who sold mt Gox to Karpeles 6 months before it collapsed, may still have had access to the admin username and password.
McCaleb sold it to Karpeles in early 2011. That's 3 years before it collapsed. Karpeles would have been crazy not to migrate to new wallets when he transferred ownership. IIRC according to the WizSec report, the Mt Gox private keys were compromised in September 2011.
I'm not ruling out the possibility that McCaleb could have been involved in some way, just pointing out those facts...
March 16, 2019, 02:40:35 PM
He was not the founder. And as a company, My gox was fucked since the inception. It ha many flaws and horrible security. Justice isn't good at punishment for incompetent people and company. But the market is.
March 16, 2019, 11:40:11 AM
It's an example of a white collar crime and those usually get punished very lightly. There are of course cases that were intentionally hyped and ended with extremely harsh sentences to scare off followers, like Madoff, but the majority ends with <5 year sentences. It's worth it to cheat people and run fraudulent businesses if you're ready to sacrifice a few years of your life for a few million USD. The prison diet serves Karpeles well, he looks much better than 2 years ago.
March 16, 2019, 11:36:47 AM
Common if Karpeles would be cached on a hacking his own exchange then he has to be the dumbest person in the world.
Such a person would not run one of the first and biggest crypto exchanges in the world in the first place.
Well, people should know that sometimes the first product is at the same time rough simply because its team and the entire community still don't know what dangers they and the entire industry will face.
Anyway, how long he should stay in prison? The entire life? Or maybe he should get a death sentance.
Well it should be more than 2 years that's for sure given the magnitude of the "theft". Though i don't think it warrants a lifetime sentence since most of the investors' bitcoins will be paid back. Probably somewhere between 10 to 15 years would suffice.
March 16, 2019, 07:47:16 AM
There is no justice in those cases
Look what did happen to Mintpal owners.They has been sentenced for two years of prison in England.Two years if holidays after mass stealing.Nothing for that kind of financial fraud
Yet another example is Cryptsy. Cryptsy owners has stolen millions from people and nothing happen to them
During old time it was even kind of business .Run exchange and than scream oh we are hacked.It was never any hack funds were stolen by exchange owners
Look what did happen to Mintpal owners.They has been sentenced for two years of prison in England.Two years if holidays after mass stealing.Nothing for that kind of financial fraud
Yet another example is Cryptsy. Cryptsy owners has stolen millions from people and nothing happen to them
During old time it was even kind of business .Run exchange and than scream oh we are hacked.It was never any hack funds were stolen by exchange owners
March 16, 2019, 06:33:55 AM
...Anyway, how long he should stay in prison? The entire life? Or maybe he should get a death sentance.
No, he should give back what he has stolen!!! In the first place.
...he was charged with faking trading information at Mt.Gox over “several years” and embezzling $3 million in customer funds deposited with the company...
Later maybe, I don't know... a death sentence?
March 16, 2019, 06:18:53 AM
Common if Karpeles would be cached on a hacking his own exchange then he has to be the dumbest person in the world.
Such a person would not run one of the first and biggest crypto exchanges in the world in the first place.
Well, people should know that sometimes the first product is at the same time rough simply because its team and the entire community still don't know what dangers they and the entire industry will face.
Anyway, how long he should stay in prison? The entire life? Or maybe he should get a death sentance.
March 16, 2019, 06:18:30 AM
The 650 000 BTC are small in comparison to the damage that he done to the progress and adoption of Bitcoin.
This is true, not only he make a huge financial loss for thousands of investors, but this event has had a significant impact on public perception about what is actually bitcoin. This is certainly shake a lot of potential investors, and even today it has a negative impact because users still wait for they money. Situation is today better in terms of security, people learn (at least some) that exchanges are only for trading, and that coins should be stored in desktop or even better in hardware wallets.
Regarding Karpeles, he does not act as a worried man at all, his life continued in a positive direction. In April 2018 he become chief technology officer for the world's largest virtual private network (VPN) service, London Trust Media.
Given his expertise in past jobs, users should think twice before they use this VPN.
March 16, 2019, 06:09:59 AM
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.
that seems doubtful at this point. analysts have been pouring over mt gox's database and blockchain data for years now and all signs point to theft on a massive scale. vinnik (the guy arrested for running BTC-E) even used his real ID documents to verify accounts used to exchange the stolen coins. see here:
https://blog.wizsec.jp/2017/07/breaking-open-mtgox-1.html
https://blog.wizsec.jp/2015/04/the-missing-mtgox-bitcoins.html
https://www.youtube.com/watch?v=l70iRcSxqzo&feature=youtu.be
what's more, it appears gox was already insolvent (to the tune of 80k bitcoins) when jed mccaleb sold it to karpeles in 2011: https://www.thedailybeast.com/behind-the-biggest-bitcoin-heist-in-history-inside-the-implosion-of-mt-gox
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