Arrested MtGox founder can become multimillionaire

Mark Karpeles can become very rich again due to the fact of Bitcoin price jump
10 November 2017   2341

The founder of the MtGox exchange, Mark Karpeles, against whom the lawsuit on charges of embezzlement is underway, can take advantage of the rise in the price of bitcoin to make a huge profit. This is reported by The Wall Street Journal.

Monetary claims of the creditors of the closed Japanese exchange MtGox are based on the price of bitcoin in relation to the yen as of April 2014 (50,058 yen per bitcoin). MtGox, in turn, belongs to a company controlled by the former head of the exchange Mark Karpeles. At the disposal of Karpeles is 200,000 bitcoins (assets of the bankrupt exchange), the price of which has increased 17 times since that time (836,761 yen for bitcoin).

The bankruptcy proceedings of the MtGox exchange show that millions of dollars will remain at the disposal of former shareholders after the financial claims of creditors are satisfied.

Carpels himself denies his guilt in a criminal offense and does not believe that he will be able to save even part of the money. He believes that it will be difficult for him to find a buyer. In addition, he stressed, assets after bankruptcy are usually sold at their value at the time when the company announced insolvency.

The current situation indicates that the existing regulatory framework is not designed to resolve disputes in the bankruptcy of cryptocurrency exchanges. Many creditors would like to return their money in bitcoin-equivalent, but the Japanese legislation in this context does not provide for ownership of an unphysical object.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   132

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.