Bitcoin: trial of former MtGox boss opened in Tokyo

At this first hearing, Frenchman Mark Karpeles, charged with embezzlement and other charges, pleaded not guilty.

The trial of Mark Karpeles opened on Tuesday 11 July in Tokyo. The ex-boss of the now-bankrupt Mitsubishi exchange platform MtGox (whose headquarters was in Tokyo) appears for embezzlement and other charges. At this first hearing, which will be followed by a second Thursday, Mark Karpeles pleaded not guilty.

The affair of the bankruptcy of MtGox, in 2015, had made a great noise in Japan and abroad, and sabotaged for a time the reputation of the cryptomonnaie bitcoin. Mr Karpeles has always claimed that the platform had been the victim of an external computer attack but in mid-September 2015 he was charged and jailed after six weeks in police custody for Information and misappropriation of 321 million yen (2.4 million euros).

Mark Karpeles was released on bail after one year in custody in France in 2010 for intrusion into a computer system.

Mark Karpeles, dressed in a dark suit with freshly cut hair and headdress, appeared in court a little less than an hour before his trial, which started at 10 am local time (3 am French time). This neat style contrasts with the highly depressed and arrogant image he gave of him in previous appearances. "I swear before God that I am innocent," said MtGox's former boss, reading in Japanese a letter delivered by his lawyer.

"I apologize"

The 30-year-old appears under accusations of manipulation of computer data and embezzlement of commercial funds "for the purpose of covering personal expenses, with breach of obligations arising from his office". A hundred or so individuals were waiting in court, but only twenty-one were chosen by lot to attend this first hearing.

Mark Karpeles, who defined himself before the magistrates as "computer scientist", benefits from the assistance of two Japanese interpreters. Reading the indictment in detail, lasted nearly thirty minutes in Japanese, then in French, an unusual length of time, so much so that the principal judge asked the accused to sit down.

Mr Karpeles disputed that he had knowingly used personal money for another's purposes and once again claimed that the MtGox platform had been the victim of an external computer attack. "The bankruptcy of MtGox caused a lot of damage and, as CEO at the time, I apologize," he said.

"The charges against him may not cover everything that has happened in MtGox, so it's just a question of how far investigations are going," said one of the injured investors, Kolin Bruges, the tribunal. He as many others were waiting for this trial and hope to recover a percentage of their initial bet. According to Japanese media, the money they invested could be repaid to them in whole or in part, either in traditional currency or in bitcoins.