MtGox bitcoin founder gets suspended sentence for data tampering

A Japanese court sentenced the former high-flying creator of the MtGox bitcoin exchange to a suspended jail sentence of two and a half years Friday after finding him guilty of data manipulation.

The Tokyo District Court convicted Mark Karpeles, a 33-year-old computer whizz from France, for tampering with computer data but acquitted him over charges of embezzling millions from client accounts.

The sentence was suspended for four years.

In a summary of the ruling, the court said Karpeles had "harmed the users' trust greatly" by manipulating data and "abused his expertise as an IT engineer and his position and authority".

Prosecutors had claimed that Karpeles had pocketed some 341 million yen (USD 3 million) of client's money and splashed it on a lavish lifestyle. They called for him to serve 10 years behind bars.

However, in throwing out the embezzlement charges, the judge said there was no financial damage done to MtGox and ruled that Karpeles did not intend to cause any damage.

The judge cited an expert opinion that said owners of small and medium enterprises often borrow funds without proper accounting and ruled that the court assumed Karpeles intended to return the money.

Karpeles entered the courtroom wearing a dark suit and black shoes and he bowed politely to the judge. He was motionless after the verdict was read out.

After the sentencing, the judge asked if Karpeles understood the sentence. Karpeles responded simply: "Yes, I did."
The Frenchman was first arrested in August 2015 and, in an echo of another high-profile case against former Nissan chief and compatriot Carlos