Bitcoin exchange MtGox CEO Mark Karpeles spent embezzled funds on prostitutes

Mark Karpeles, the disgraced CEO of the now defunct bitcoin exchange MtGox, who was arrested by Tokyo police last year, may have spent a fortune of the funds he allegedly embezzled on prostitutes and escorts. Karpeles was accused of pocketing a large sum of deposits after MtGox filed for bankruptcy after losing 850,000 bitcoins to data theft.

French born, Karpeles had spent an unspecified sum of money on prostitutes, Japan’s Yomiuri newspaper reported. On the other hand, news agency Jiji Press, said that police found he had access to several venues that were involved with “sexual services”.

The police are also investigating the purchase of a luxury bed worth ¥5.7m (£27,527, $42,000) by Karpeles after the bankruptcy was filed. In February last year, MtGox was shut down after it claimed it lost 850,000 bitcoins — valued at ¥48bn — from its digital vaults. Subsequently, the company filed for bankruptcy protection.

Initially, Karpeles and his fellow employees said the bitcoins could have been hacked or a bug in the Gox software could have led to the demise of the server, which led to the data theft. Karpeles had then blamed a suspicious US hand behind the attack, who he claimed, wanted to

Read more ... source: TheBitcoinNews