Former Mt. Gox CEO Draws Parallel Between His Case and FTX’s Former CEO
The former CEO of the defunct Bitcoin exchange Mt. Gox, Mark Karpelès, has compared his own case to that of Sam Bankman-Fried (SBF), the former CEO of FTX. Karpelès made this analogy in response to SBF’s request to be released in order to adequately prepare for his upcoming trial in October.
Only A Calculator To Work With
Karpelès revealed in a tweet that when he was arrested in 2015, he had only a “simple calculator” to work with. This limited computing power was all he had to review over 20,000 pages of evidence, including 5,000 pages of accounting documents.
He managed to work with what he had and credits the calculator as being instrumental in his release on bail and eventual clearing of all embezzlement and breach of trust charges.
This comment from Karpelès comes at a time when Sam Bankman-Fried and his lawyers are seeking his release, arguing that he lacks the necessary resources. They claim that SBF does not have frequent access to an internet-enabled device to review the discovery materials provided by the prosecution.
Similarities Between Sam Bankman-Fried And Karpelès?
Karpelès’ comment suggests that Sam Bankman-Fried is receiving better treatment than he did during his detention in Japan. Karpelès believes that if he could secure his freedom with limited resources, then SBF should be able to do the same.
There are similarities between the two cases. Both Karpelès and SBF have been accused of embezzling customers’ funds. Karpelès was responsible for the loss of customers’ Bitcoins before Mt. Gox filed for bankruptcy, while SBF is facing allegations of embezzlement.
Karpelès spent 11 months and 15 days in pre-trial detention without access to any evidence for the first 7 to 8 months. However, he diligently organized the evidence against him, indexed the documents for easy accessibility, and performed accounting documentation. Through this process, Karpelès and his lawyers discovered inconsistencies in the prosecution’s argument, leading to his release on bail.
After his release, Karpelès faced a case of breach of trust, which resulted in a two-year trial. Ultimately, he was cleared of any wrongdoing in 2019.
Meanwhile, Sam Bankman-Fried is currently facing seven counts of fraud-related charges. He maintains his innocence but will have to prove it in court. If found guilty of all charges, he could face up to 100 years in prison. His trial is scheduled to begin on October 3, unless there is a postponement by the court.
Featured image from CNN, chart from Tradingview.com
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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