Japanese police re-arrested CEO of bankrupt bitcoin exchange Mt. Gox Mark Karpeles. According to local media, he spent the stolen money to buy a luxurious canopy bed.

Tokyo police served another arrest warrant on the former Chief Executive Officer of the bankrupt Mt. Gox Co. bitcoin exchange on Friday, reports The Japan Times.

According to Yoshiuri Shimbun, the police suspects that Karpeles stole about $2.6 million from the exchange account. From this amount, he spent $42,000 to buy a luxury bed. Karpeles allegedly used the rest of the sum to buy intellectual property rights for graphic software.
Karpeles’ lawyers deny all the accusations.

Mark Karpeles was arrested in Japan on Saturday, 1 August, and taken to the Tokyo District Public Prosecutor’s Office for questioning. He was suspected to have created $1 million worth of fake bitcoins and appropriating $8.9 million of customer deposits that he allegedly sent to his private accounts. The investigators also plan to clarify whether he was involved in the loss of 650,000 bitcoins by the Mt. Gox.

Later in August, Tokyo District Court stated that bitcoin is not “subject to ownership” responding to a claimant who sought to get his bitcoins back after Mt. Gox bankruptcy. This means that the other victims of Mt.Gox crush have a very small chance to receive compensation.


Roman Korizky