Tokyo police arrest CEO of bankrupt bitcoin exchange

Tokyo police on Aug. 1 arrested the CEO of the collapsed Mt. Gox bitcoin exchange over the looting of its virtual currency.

Police suspect that Mark Karpeles, 30, accessed the exchange’s computer records and falsified data on the outstanding balance of his own account.

He was arrested on suspicion of unauthorized creation and use of private electromagnetic records. Mt. Gox is undergoing bankruptcy proceedings.

In February 2014, Mt. Gox announced that hackers accessed its computer system and stole 850,000 bitcoins, worth 46.5 billion yen ($372 million) at that time, as well as up to 2.8 billion yen from the exchange’s accounts.

Officers of the Metropolitan Police Department examined transaction records stored on computers that were voluntarily submitted to them.

Police determined that only Karpeles had access to the computer system. They said he accessed the computer system and tampered with in-house records of transactions so that his account had $1 million more than there was.

Karpeles, a resident of Toshima Ward in Tokyo, is denying the allegation, according to police.

Read on.

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