Bitcoin Exchange Head makes Million from failure

The year 2014, saw a major setback for bitcoin users. With the rising value of cryptocurrency, hundreds of Bitcoin users lost their dollars under this circumstance. But surprisingly, Mark Karpeles, the former head of Bitcoin Exchange toppled his losses to a profit of $1 billion. This was possible due to the Japanese laws for treating Gox Bitcoins.

Earlier, Bitcoin was governed by Mt. Gox that took its control like a bank But in 2014 they had shut down due to a report of mass theft of bitcoins by hackers, thereby bankrupting several bitcoin users. Mark Karpeles was later arrested on charges of mismanagement and faced criminal trials as well.

Even though he faced public condemnation, yet he could gain around 202,195 bitcoins, the net worth of which is 1.5billion. According to the Japanese bankruptcy codes, the liabilities were to be registered at market values during the proceeding. So when the incident took place the value of 1 Bitcoin was $500, which rose to $6300. This created a chance for Karpeles to retain the amount. Later, under legal proceedings, it was made clear that the retained amount belonged to Bitcoin Exchange and not Bitcoin Users.