Mt. Gox CEO Arrested by Japanese Authorities

Mt. Gox CEO Arrested by Japanese Authorities

Bitcoin exchange Mt.Gox’s chief executive officer Mark Karpelès has been arrested again by Japanese authorities on embezzling charges to the tune of GBP 1.7 million in bitcoins from fallen company.

He was previously arrested this year for the alleged fraud that led to the demise of the company, which also hurt the reputation of Bitcoin as a virtual currency.

A Tokyo Police spokesperson revealed that Karpelès had allegedly altered data on the computer system to falsify the existence of approximately $1 million in 2013.

Police were also looking into Karpeles' potential involvement in almost $390 million in missing Bitcoins during 2014.

Mt.Gox claimed to have handled the majority of the world’s Bitcoin transactions. The company fessed up to losing 850,000 coins worth 48 billion yen and Karpeles said he has found 200,000 of the lost Bitcoins in a "cold wallet", which is a memory stick that is not connected to other computers.

Karpeles says he is “just a victim” and has denied altering account balances.

  • Jade: that's like saying if someone hacked into a banks computer and transferred funds out of peoples accounts there was no tangible object that was stolen. Bitcoins are currency, they are traded and spent mostly on line, but you can purchase a real life tangible bitcoin made from real gold...
  • Like many people, I haven't decided if this guy, is guilty of embezzlement or a victim of this virtually unregulated digital currency. Even though Bitcoin is digital, virtual currency, it is considered data. How can he be charged with embezzlement when there is no tangible object or evidence that provides proof of his guilt. There are so many unanswered questions. All the Mt. Gox data about this needs to be released so somebody can sort out the truth.

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