Mark Karpeles, Chief Executive Officer of Tokyo-based bitcoin exchange Mt. Gox, attending a news conference in Tokyo, Japan. EFE/File
Tokyo, Aug 4 (EFE).- Bitcoin exchange Mt. Gox was in debt six months before it filed for bankruptcy after reporting the disappearance of its units due to cyber attacks, Japanese investigators said Tuesday.
The Tokyo-based company that went to become the world’s largest bitcoin exchange, ran out of money in early August 2013 and began paying clients with money from other “virtual wallets,” reported the Kyodo news agency citing investigators.
On Saturday, Japanese authorities arrested Mt. Gox founder Mark Karpeles on suspicions of accessing the exchange’s computer system and inflating his account, practices that could be linked to the company’s multi-million-dollar bankruptcy.
The officials believe Karpeles diverted funds worth $8.9 million to firms