Tokyo Police Suspects Mt Gox CEO for Committing Account Frauds

The Tokyo Metropolitan Police is reportedly charging former Mt Gox CEO, Mark Karpeles, on suspicions of committing account frauds.

“The Tokyo Department, after finding all the evidences, is planning to file a case against Mark Karpeles,” reported Nikkei, a Japanese daily. “There are suspicions that the French CEO misappropriated deposited funds by fulfilling received bitcoin buy orders from fake accounts. The police is also looking into pursuing charges of corporate embezzlement.”

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The ongoing Mt Gox investigation has found many fraudulently-created private electromagnetic records — dummy exchange accounts credited with fake Bitcoin balances — that might have been utilized for meeting customers’ buying demands. It also means that users never had owned the Bitcoins that were considered stolen in the last year’s hack at Mt Gox.

A parallel investigation, done by a Tokyo-based security firm WizSec, had also revealed that the Mt Gox Bitcoins were stolen way before February 2014. 

Mt Gox Puzzle Remains

While the authenticity of the article continues to be shady, and cannot be verified at press time, it would still be important to understand the possibilities behind such an allegation. Nikkei claims that they have interviewed an

Read more ... source: TheBitcoinNews