The CEO of failed Bitcoin exchange company Mt.Gox has been arrested by the Japanese police and is currently being held in connection with the loss of bitcoins worth $387 million.
Mark Karpelès, former founder and CEO of Japanese-based bitcoin exchange Mt.Gox, once the biggest bitcoin exchange in the world has been arrested in Japan by the country’s police on suspicion on inflating his account by a million dollars.
Japanese police arrested Karpelès, 30, alleging that he manipulated the collapsed company’s computer systems in February 2013 to increase the cash balance in an account owned by him.
Mt.Gox, A Tumultuous Past
Japanese bitcoin exchange Mt.Gox, based out of Tokyo was once the world’s largest exchange platform for virtual currency Bitcoin in terms of trading volume. Mt.Gox went offline early last year after filing for bankruptcy in February 2014 after claiming that the company had lost 750,000 of its customers’ bitcoins besides 100,000 of its own. At the time, this accumulated to nearly $500 million. A month later in March, the company then said it found 200,000 lost bitcoins, worth around $116 million –