Japanese news outlet News24 reported on July 13, 2016, that Mark Karpeles, the former CEO of defunct Bitcoin exchange Mt Gox, has been released on bail. The video footage shows a significantly thinner Karpeles compared to his appearance a year ago. His bail was set at $100,000, and he is not allowed to leave Japan pending trial.
Background: 700,000 Bitcoin Loss and Embezzlement Charges
Karpeles was at the helm of Mt Gox when the exchange lost approximately 700,000 Bitcoins in 2014, leading to its bankruptcy. Japanese prosecutors allege Karpeles embezzled $3.4 million around the time of the collapse. He was arrested twice for moving funds — first in October 2015 for transferring $1 million to his personal bank account. Since then, he had been held in detention for over a year until this bail.
Unusually Long Detention and Rare Trial Delay
Japan’s criminal justice system boasts a conviction rate of 99.99%, making Karpeles’ year-long pre-trial detention without trial highly unusual. Local sources suggest the delay may be due to the technical challenges of tracing Bitcoin transactions; police want to be absolutely certain before indicting Karpeles. Separately, the French Embassy has reportedly complained to Japanese authorities about the prolonged investigative detention, expressing concern over the case’s status.
Lost 35kg in Prison, Appearance Drastically Changed
Sources in Japan confirm that Karpeles lost 35 kilograms while incarcerated. The News24 video shows a gaunt man bearing little resemblance to his earlier photos. This weight loss might even help him avoid public recognition in Tokyo. Under his bail conditions, Karpeles must regularly report to police and remains under judicial supervision.
Unconfirmed Rumors: Police Allegedly Asked Him to Sign Satoshi Statement
Another unverified rumor from Japanese sources claims that police attempted to persuade Karpeles to sign a statement acknowledging he is Satoshi Nakamoto, the pseudonymous Bitcoin creator. Although unconfirmed, such forced confessions are not unheard of in Japan given the extremely high conviction rate. If true, it could indicate a deeper investigation into the origins of Bitcoin itself.
Bitcoin.com will continue to monitor the case with reporters and employees based in Japan, providing updates as new information emerges.