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CEO of failed MtGox bitcoin exchange arrested in Japan

Mark Karpeles, former CEO of the failed MtGox bitcoin exchange, has been arrested in Japan
By: Michael Hatamoto | Business, Financial & Legal News | Posted: Aug 3, 2015 9:45 am
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Japanese police arrested Mark Karpeles, the former CEO of the defunct MtGox bitcoin currency exchange, after the company infamously lost hundreds of millions of dollars of bitcoins more than one year ago.

 

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The company filed for bankruptcy protection in February 2014, with 100,000 of its own bitcoins - and more than 750,000 customer bitcoins - mysteriously disappearing in a high-profile theft. Company officials eventually blamed a software security flaw. Those bitcoin totals were the equivalent of $27 million of company funds and $480 million of customer currency.

 

Around one month after its bankruptcy claim, MtGox reportedly found 200,000 missing bitcoins - about $116 million - located in a digital wallet from 2011. Japanese officials believe Karpeles knew about the missing bitcoins, and depositors weren't notified when the money was transferred again.

 

It's hard to get a realistic assessment of bitcoins, as several other bitcoin exchanges have suffered theft and disappearing currency. MtGox supporters want data from the shuttered firm to be made public, so investors and hackers are able to more accurately figure out what happened.

NEWS SOURCES:Businessinsider.com, Media.coindesk.com

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