Mark Karpeles CEO of MtGox arrested in Tokyo.

We recently published an article informing our readers that the Tokyo Police is going to charge MtGox CEO Mark Karpeles.

Today around 6 am Tokyo time, authorities arrested 30-year-old Mark in connection with the lost bitcoins.

Police officials are claiming that the CEO knows what happened to the Bitcoins and they plan on finding out.

MtGox was once the largest bitcoin exchange in the world in terms of volume but last year according to the companies top management, hackers had inflated their system due to poor security and had stolen 850,000 Bitcoins; that is almost 7% of all the bitcoins in existence.

Later on in February last year, the company filed for bankruptcy making their investors and clients extremely angry. The bankruptcy and the bitcoin that mysteriously disappeared led to many protests and sit-ins outside the main office of MtGox in Tokyo.

However, one month after the bankruptcy, the company said they had recovered almost 200,000 Bitcoins from an old digital wallet from 2011.

This reduced the number of missing Bitcoins to 650,000 approximately $183 million at current rates.

Yesterday, reports emerged that Karpeles was going to be arrested, this led Karpeles to send a message to The Wall Street Journal telling them the allegations are false. He informed the paper that he planned on denying the charges completely.

Defending his client, Karpeles attorney speaking to local news channel said his client has done nothing illegal. However, after the arrest, his attorney has not been available for a comment.

The main accusation against Karpeles is that he accessed the exchange’s computer and falsified data to change the outstanding balance, making it appear that $1 million dollars were added to his account.

However, Mark has not been charged with anything yet and is being detained. According to Japanese law, he can be detained for 23 days without possibility of bail or formal charge.

Currently, the company is under a liquidation process and court appointed Payward Inc, another Bitcoin exchange to help the court with the paperwork involved, eventually helping them in solving the case.

People at Payward Inc have refused from giving any comment regarding the accusations against Mark.

The Wall Street Journal tells that after the bankruptcy the CEO moved out from his skyscraper residence in Tokyo and shifted to a much simpler lower rent location, and in correspondence with the Journal, mark said he loved “the simple life of a developer”..

While on Reddit many haters are taking their frustration out by celebrating his detention and making memes about it.

You can watch the video of the arrest made by local Japanese news channel here.


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