Bitcoin Exchange Operator Mark Karpeles to Be Arrested

Japanese authorities will be arresting Mark Karpeles, former CEO of Mt. Gox, at one time the largest Bitcoin exchange in the world. Investigators claim that Karpeles played the system for years, skimming bitcoins while the exchange was actually in debt. It is now commonly believed that the exchange may have been broke since as early as 2011, but always managed to appear as if things were being done properly.

The Japanese government is charging Karpeles with cooking the books, using fake accounts to fill orders, fraudulently skimming funds in the process.

Following the independent report from earlier this year which concluded that Mt. Gox was leaking funds as early as 2011, it doesn’t look like a good time to be Mark Karpeles. Japan has one of the highest conviction rates in the world. Karpeles could be in serious trouble if his legal defense does not hold up.

The government going after him now is not the not the least of Karpeles troubles, however. He also has to deal with the many depositors of Mt. Gox who would like some or all of their money back. Despite a bankruptcy hearing, many depositors around the world would like to know when or how they might receive their money back.

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