Mt Gox’s Karpeles to face embezzlement charges in Japan

Bitcoin-exchange founder, arrested last month, accused of $2.7m theft

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Mt Gox’s Karpeles to face embezzlement charges in Japan Karpeles is accused of stealing $2.7m in bitcoin. (Getty Images)
By  Stephen McBride Published  September 13, 2015

Public prosecutors in Japan have filed embezzlement charges against Mark Karpeles, the founder of the Mt Gox bitcoin exchange that was shut down after sizeable sums of clients' funds went missing in the wake of a cyber-attack.

According to several media reports, the charges, which were filed on Friday, accuse 30-year-old Karpeles, who was arrested last month, of stealing $2.7m in bitcoin.

Prosecutors intend to show that French-born Karpeles used the cash to buy software development rights and an expensive custom-built bed.

According to earlier reports, Mt Gox employees had been suspicious of how money was being funnelled within the organisation.

Karpeles denies the charges and said that any data falsification was done for the good of the company and that he intended to pay the money back.

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