Head of Bankrupt Bitcoin Exchange Arrested in Tokyo

iStock/Thinkstock(TOKYO) — Japanese police have arrested the former head of a bankrupt virtual currency exchange.

Mark Karpelès, 30, was arrested on Saturday after a spokesman for the Tokyo police said Karpelès was suspected of inflating his bank account by $1 million after accessing the computer system of his defunct Bitcoin exchange called Mt. Gox.

Local media also report Karpelès is under investigation for the disappearance of hundreds of millions of dollars worth of Bitcoin.

Karpelès told The Wall Street Journal via instant messages that the reports were “false” and he would deny the allegations.

Tokyo-based Mt. Gox filed for bankruptcy in 2014 when the exchange said because of a security issue, 750,000 customer Bitcoins and 100,000 of the exchanges Bitcoins were stolen.

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Originally appeared at: http://www.kmbz.com/Head-of-Bankrupt-Bitcoin-Exchange-Arrested-in-Toky/21815862