Remember Mt.Gox? Once the world’s largest Bitcoin exchange…
…then in early 2014, Tokyo-based Mt.Gox Bitcoin exchange filed for bankruptcy saying it lost some 8,50,000 Bitcoins (worth $64 Million) to hackers and suddenly went dark with no explanation.
Last Friday, Mark Karpeles, the former CEO of the collapsed Mt.Gox, was arrested by Tokyo Metropolitan Police in connection with the disappearance of Bitcoins worth £247 Million.
Police believe Mr. Karpeles had accessed the computer system of the Bitcoin exchange and manipulated the outstanding balance to cover up fraudulent transactions.
The company said at the time that 750,000 customers’ Bitcoins and another 100,000 belonging to the exchange were stolen due to an unknown vulnerability in the company’s software.
While he is not yet been charged, the authorities are investigating his involvement in the stealing of Millions of dollars of the Bitcoin virtual currency when the exchange collapsed in 2014.
Mt.Gox said that it could not find 850,000 Bitcoins, leaving angry customers out of pocket.
Karpeles’ Lawyer denied any wrongdoing by his client and said that under the criminal justice system of Japan, police can hold a suspect without charge for up to three weeks.
If found guilty, Mark Karpeles could face up to five years in Jail, or a fine of up to 500,000 yen (£2,650).