Bitcoin Boss Arrested In Japan Over $387m Loss

Japanese police have arrested, Mark Karpeles, the CEO of the failed company MtGox, which was once the world’s biggest exchange of the virtual currency, bitcoin.

According to a BBC report, the 30-year-old is being held in connection with the loss of bitcoins worth $387m last February.

He is suspected of having accessed the exchange’s computer system to falsify data on its outstanding balance.
MtGox claimed it was caused by a bug but it later filed for bankruptcy.

Japan’s Kyodo News said a lawyer acting on Mr Karpeles’ behalf denied his client had done anything illegal.

Mr Karpeles, who was born in France, is suspected of benefiting to the tune of $1m (£640,000), the agency said.

In March 2014, a month after filing for bankruptcy, MtGox said it had found 200,000 lost bitcoins.

The firm said it found the bitcoins – worth around $116m – in an old digital wallet from 2011.

That brings the total number of bitcoins the firm lost down to 650,000 from 850,000.

That total amounts to about 7% of all the bitcoins in existence.

Bitcoin is a virtual currency built around a complicated cryptographic protocol and a global network of computers that oversees and verifies which coins have been spent by whom.