Mark Karpeles, the chief of now bankrupt Bitcoin exchange in Japan, was arrested today over suspicions he illicitly added money to his account by accessing secure severs. Surprisingly, there seems no mention about the huge quantum of Bitcoins that suddenly vanished when the Mt. Gox exchange collapsed.
Japanese police have detained Karpeles, the head of the now defunct Mt.Gox bitcoin exchange company. Japan’s Kyodo News Agency reported, citing the Metropolitan Police Department that Karpeles is suspected of “accessing the exchange’s computer system and falsifying data to change the outstanding balance.”
It is being claimed that the Mt. Gox CEO had illegally used the Bitcoin platform to add $1 million to an account under his control, reported MSN. Issuing a very small statement, the Japanese police informed about the arrest,
“Mr. Karpeles had unjustly inflated the balance of an account held under his name by manipulating transaction records on a system that Mt. Gox used to swap Bitcoins for dollars. He created false information that $1 million had been transferred into the account, when in fact it had not been.”
The online financial platform, which Mark Karpeles himself created, was hugely popular for generating, storing and exchanging Bitcoins, until it collapsed. It is still not exactly known what happened to nearly half a billion dollars in Bitcoins that the company said had vanished from its computer systems, reported New York Times.
The collapse of Mt. Gox was one of the biggest setbacks for the still emerging virtual currencies. Once considered one of the most democratic ways to generate money online, Bitcoin’s reliability took a huge hit following the debacles. Many countries which were contemplating acceptance of Bitcoin as a legitimate virtual currency and even taxing its transactions, suddenly fell silent.
However, before the Mt. Gox exchange, which was created by Mark