MtGox bitcoin chief arrested in Japan

MtGox bitcoin chief arrested in Japan

3 August 2015, 12:58
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The CEO of the bankrupt company MtGox (which used be the world's biggest exchange of the virtual currency, bitcoin) was arrested in Japan.

Mark Karpeles, 30, has been detained in connection with the loss of bitcoins worth $387m last February. He is suspected of having entered the exchange's computer system to falsify data on its enormous balance.

MtGox announced it was caused by a bug but it later filed for bankruptcy.

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, Japanese sources say.

In March 2014, a month after filing for bankruptcy, MtGox said it had found 200,000 lost bitcoins, worth around $116m, in an old digital wallet from 2011.

That brings the total number of the crypto money the company lost down to 650,000 from 850,000. That total amounts to about 7% of all the bitcoins in circulation.

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

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