Japanese Police: Mt Gox CEO Bought Himself a $48,000 Bed
There is a new warrant out for Mark Karpeles, who police say embezzled $2.6 million while CEO of the Bitcoin company.
Mark Karpeles, the former CEO of Mt Gox, a Bitcoin exchange that shut down under suspicious circumstances, is facing new charges, AFP reports. This time he's accused of embezzling about $2.6 million USD worth of Bitcoin, coming on the heels of allegations that he manipulated data to create about $1 million USD in the digital currency.
Karpeles has been in police custody for three weeks, but this is the first formal charge brought in the case. He reportedly spent the money mostly on software rights, but also purchased a $48,000 bed for himself. By bringing new charges, police are able to extend their constitutional ability to keep him in custody and allow time for further investigation. While the new charges are a sort of formality while the police investigate even heftier charges: that Karpeles may have embezzled 850,000 bitcoins worth $480 million at the time.
Mt Gox was once responsible for 80 percent of Bitcoin transactions before shutting down in 2014. Angry investors were unable to access their funds, and a recent lawsuit in Japan throws into doubt the chance that they may recoup their money. In addition, some of Mt Gox's funds were seized by the US government. The closure dealt the digital currency a major blow, and no immediate successor has been able to pick up where Mt Gox left off.