The Wall Street Journal reported that an official said police allege Karpeles manipulated Mt. Gox’s computer system to inflate its assets.
The newspaper said Japanese media broadcast footage of Karpeles being led by police officers from his Tokyo apartment before 7 a.m. Saturday local time. An official knowledgeable about the investigation said authorities allege Karpeles manipulated a company account balance and used it to counter customer orders. Some of the Bitcoins Karpeles claimed were lost may not have existed, the official said.
The Wall Street Journal said Karpeles was not immediately available for comment Saturday. On Friday, following a local media report that he was going to be arrested, Karpeles said in instant messages to the newspaper that the allegations were “false” and he would “of course deny” them. His attorney did not answer calls from the Wall Street Journal for comment.