Trial of the founder of MtGox began

Mark Carpels is accused of theft and embezzlement of 850,000 BTC investors
10 July 2017   1052

The former head of the Bitcoin Exchange MtGox, Mark Carpeles, will appear this week before a court in Japan on charges of stealing and squandering hundreds of millions of dollars of investors. This is reported by AFP.

Blockchain

Distributed database that is used to maintain a continuously growing list of records, called blocks. 

The 32-year-old French entrepreneur was the founder of the MtGox exchange, through which, between 2011 and 2013, significant amounts of traders were held. In many respects thanks to the activity of MtGox, the price of bitcoin in its time overcame for the first time the mark of $ 1000, however, with the collapse of the exchange, it quickly went down.

bitcoin charts
Bitcoin charts

MtGox was based in Tokyo and at a certain stage was the largest trading platform in the bitcoin ecosystem. The degree of dominance of MtGox is fully explained by simple figures: about 70% of all transactions with the crypto currency passed through the exchange.

In early 2014, MtGox, was charged in a dirty game and stopped working. Mark Carpiles had later claimed that the platform had undergone a hacker attack, but a study by Japanese company WizSec, published in April 2015, showed that MtGox started withdrawing funds as early as 2011, and by 2013 there were practically no funds on the stock exchange accounts.

Bitcoin

Is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen.

The losses of MtGox investors are estimated at 850,000 BTC. At that time, this amount was about $ 480 million, at today's market rate it is about more than $ 2 billion.

In August 2015, Karpeles was arrested, and after a while he was formally charged with theft and embezzlement of investors' funds. As far known, the Frenchman led a luxurious lifestyle, renting a penthouse in Tokyo for $ 11,000 a month.

However, less than a year later - in July 2016 - Karpeles was free, paying a bail of 10 million yen. Under the terms of the deal with the authorities, Karpeles is forbidden to leave Japan, he also refused any communication with the press.

Lawyer of Karpeles, Kiichi meanwhile said that Karpeles intends to insist on his innocence.

In June, representatives of the New York blocking start-up Chainalysis said that they know the whereabouts of 650,000 BTC, disappeared from the accounts of MtGox.

German Financial Regulator Clarifies Stance on ICOs

The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has clarified its position on ICOs
22 February 2018   32

German financial regulator admitted it was receiving many inquiries about the status of tokens and cryptocurrencies. According to an advisory letter, BaFin provides some basic definitions of ICOs and related terms. It is important because the results of a new survey showed that more than two-thirds of Germans know about bitcoin.

In this letter, BaFin educates the public and explains how tokens are typically generated, how blockchain works and that ICOs are used to raise funds for startup projects. The note states that for regulatory purposes, ICOs, tokens, coins, and cryptocurrencies are subject to the existing provisions in the field of securities supervision and other relevant national and EU laws.

The authority advises participants in ICOs to check and follow rules applicable to regulated financial instruments, such as securities. If businesses or individuals have any doubts about regulations, they should approach BaFin.

According to BaFin, companies should fulfill any obligations under the Banking Act and the Capital Investment Code, the Insurance Supervision Act and the Payment Services Supervision Act. The transactions may be prohibited if relevant regulatory requirements are not met.

The authority also states that legal classification of tokens requires precise examination. It will determine their status on a case-by-case basis after studying their features. The token should be transferable and tradable on cryptocurrency trading platforms in order to be classified as a security.