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Former Mt Gox head charged with Bitcoin embezzlement

Mark Karpeles, who is the former head of the bitcoin exchange Mt Gox has been charged by Japanese prosecutors for embezzling bitcoins which led to its collapse in 2014.

According to the Japanese media, Karpeles allegedly embezzled £1.7 million worth of bitcoins from the bitcoin exchange which led to massive shortfall in customer funds.

The funds were transferred to a Gox bank account including other accounts. The money was apparently used for buying licenses for different 3D-rendering softwares. The Jiji Press says that the embezzled money was used on an “expensive custom-built bed.”

It was during August when Karpeles was arrested. According to the Tokyo police, he is suspected to have accessed the exchange’s computer system and inflated his cash account by approximately $1 million (£640 million).

As of now, Mark Karpeles has denied all the charges against him. And according to the Yomiuri Shimbun newspaper, he intended to pay all the money back.

In January, Yomiuri had already reported that it was something that would have been done by an insider rather than an outside attack, which was contrary to the reports of Mt Gox.