UPDATE: Mt.Gox Acquittal Appeal Dropped By Japanese Prosecutors

As the reports that we have in today’s latest digital currency news show, the Japanese prosecutors have decided to drop the appeal to the embezzlement acquittal of the ex-Mt.Gox CEO Mark Karpeles.

The ex-CEO of the now defunct Mt.Gox was acquitted of charges of embezzlement on March 15 but was later found guilty of tampering with the financial records of his exchange. According to the Mainichi reports, the prosecutors initially asked for to appeal the acquittal on embezzlement charges but they eventually decided to let the decision stand.

Karpeles was accused of stealing about $3 million which is 341 million yen from the customers’ money placed on the exchange and had it spent on a software developer but also for personal needs and luxuries.

The Tokyo District Court found that Mark Karpeles had mixed his personal finances with the finances of Mt.Gox by trying to conceal the losses of the platform after it was hacked. He received two years and six months jail sentence but it turns out that he won’t have to serve the punishment unless he commits another crime in the next four years. The reports also continue to explain that the lawyers of the ex-CEO are contemplating whether to appeal the charges of mixing his financial records with the records of the company.

The Mt.Gox trading platform was based in Tokyo and was responsible for providing about 70 percent of Bitcoin (BTC) transactions across the globe before it found itself under a major cyber attack which led to the company going bankrupt. In 2011, the price of Bitcoin on the trading platform reached a record low of one cent because of the security breach. The collapse of the exchange in 2014 led to another great loss and this time of 850,000 BTC which were valued at $460 million at that time and now would be valued at $3.43 billion.

The Mt.Gox trustee Nobuaki Kobayashi, announced last week that he has completed the creditors rehab claims processing and that he will notify the creditors with the results in a few days. More than 24,000 creditors were affected after the exchange collapsed.