Mark Karpeles, the former chief executive officer of the now-defunct Mt. Gox, has reportedly apologized for the losses that led to the demise of the cryptocurrency exchange. However, the embattled Frenchman insisted on his innocence regarding charges of embezzlement in closing arguments during his trial in Tokyo on Dec. 27.

Sorry But I'm Not Guilty, Says Karpeles

Mark Karpeles

Karpeles is facing charges of transferring $3 million of client funds to his own account for investment in a software development business. According to prosecutors, who are pushing for a 10-year jail term, the ex-CEO falsified Mt. Gox's trading system to make customer balances appear healthier than they in fact were.

Karpeles has throughout the period of his trial consistently denied the charges. He claims that the money, moved in the last four months of 2013, was meant to serve as only a temporary loan. He also argued, earlier in the trial, that the funds in question did not belong to clients but were his collapsed company's revenue.

Appearing in the Tokyo District Court for the closing arguments on Thursday, Karpeles said he was "sorry" for failing to prevent the hack, but insisted on his innocence of the charges he was facing, according to a report by the Japanese broadcaster NHK. Prosecutors aren't investigating the hack, rather the $3 million alleged embezzlement. The Court is now expected to deliver its ruling, on a case that has run since July 2017, on March 15 next year.