The soap opera around Mt. Gox is steadily growing and some disturbing accusations are “hittng the fan” so to speak. According to new testimonies by employees the CEO of MtGox allegedly spent money from its clients’ deposits on operating expenses and wild parties and luxurious items as early as two years before the problems began. For example: their rent in the same high-status Tokyo office building as Hulu and Google, office equipment that included a robot and a 3D printer, a special edition Honda Civic imported from the UK for Karpeles etc. On a personal note I wonder why someone would import a Honda Civic. They are made in Japan and since you live and work in Japan why not just .. I don’t know LEASE a car from Japan? That just seems a deliberate waste of money.
These accusations and testimonies originated from a small group of anonymous former and current and Mt. Gox employees who gave exclusive interviews with the news agency REUTERS. This group of highly credible witnesses claims to have approached their bosses about their concerns in early 2012. However when voicing their concerns their CEO, Mark Karpeles, just laughed and said “everything is fine” and “ nothing to worry about”. Even individual inquiries by the group to view the company’s financial records were rebuffed.
Keeping staff in the dark?
According to the testimonies, the employees were worried that Gox was spending more money than was coming in and thus they requested a formal meeting with their CEO. At that said meeting the staff asked for proof that client deposit amounts were protected. When the meeting began it was a one-hour blustering and windy speech about the safety and security of the company. “It was just one huge load of fantasy” one interviewee told Reuters. “Karpeles assured us that no customer money was used improperly however he did not provide any evidence, which made us very nervous and also a bit frustrated”.
These testimonials and interviews with former and current Mt Gox employees are painting a not so nice picture for the CEO of Mt Gox .It shows that there was a general malaise in the office and personal dissatisfaction with Karpeles. Some of the reports show that Karpeles paid little attention to Mt. Gox’s exchange business but focused most of his attention to side projects like the company’s planned Bitcoin Cafe.
No end in sight. Legal issues.
On the legal aspect of this “soap drama” the deadline for an examination report issued by the Tokyo District Court has been extended to 9th May. The news from the US front isn’t also good since Karpeles is refusing to travel to the US for questioning. This was a demand from the Gregory Greene lawsuit.They had requested a US judge to order Karpeles to testify in the US, in order to protect domestic creditors. Karpeles has blatantly declined to go to the US.
One lawyer for the plaintiffs in the case expressed disapproval at Karpeles’ decision. “If you haven’t done anything wrong you don’t have to fear anything. This is another crack in the Mt Gox mask. As soon as the lawsuits gain momentum that “nice mask that Karpeles” wears will come off and all the ugliness will be exposed”.
To be continued.