Citing a report in Japanese media, AFP said Japanese police will re-arrest Mark Karpeles, the CEO of the now-defunct Mt. Gox Bitcoin exchange, on theft allegations as he faces questions over the disappearance of hundreds of millions of dollars’ worth of Bitcoin.
Police arrested Karpeles in Tokyo on August 1 over allegations he had manipulated data to artificially create approximately $1 million worth of Bitcoin.
As allowed under Japanese law, Karpeles has been held in custody without official charges for three weeks, but according to the Yomiuri newspaper, police intended to issue a new arrest warrant that claims Karpeles pocketed $2.6 million in Bitcoin.
AFP said that according to the Yomiuri article, which cited investigators, Karpeles spent most of that money on purchasing software rights, but also splurged on a $48,000 luxury bed.
Japanese police are allowed to interrogate a suspect for up to 20 days following the individual’s arrest, but with Karpeles’ time in custody slated to end this week, a new arrest warrant would