Mt. Gox head Mark Karpelès was arrested by Japanese police on Saturday, more than a year after the exchange folded amidst the loss of 650,000 bitcoins.Karpelès hasn’t been formally charged but “police are alleging that he manipulated the company’s computer system to inflate its assets,” The Wall Street Journal reported.
“Japanese media aired footage of Mr. Karpelès being led by police officers from his apartment before 7 a.m. Saturday,” the Journal report said. “An official familiar with the investigation said authorities allege that Mr. Karpelès manipulated the balance of a company account and used it to counter orders from customers. Some of the coins that he said were lost may not have existed, the official said.”
Karpelès, a 30-year-old from France, “is suspected of having accessed the exchange’s computer system to falsify data on its outstanding balance,” the BBC wrote. The exchange “claimed it was caused by a bug but it later filed for bankruptcy.”
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