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MtGox bitcoin chief Mark Karpeles charged in Japan | MtGox bitcoin chief Mark Karpeles charged in Japan |
(1 day later) | |
The founder of MtGox - once the world's biggest Bitcoin exchange - has been formally charged by prosecutors in Japan with embezzlement amid an investigation into losses of nearly $400m. | The founder of MtGox - once the world's biggest Bitcoin exchange - has been formally charged by prosecutors in Japan with embezzlement amid an investigation into losses of nearly $400m. |
Japanese police arrested Mr Karpeles in Tokyo, where he lives, on 1 August. | Japanese police arrested Mr Karpeles in Tokyo, where he lives, on 1 August. |
His arrest was connected to the MtGox loss of 850,000 Bitcoins in February 2014. | His arrest was connected to the MtGox loss of 850,000 Bitcoins in February 2014. |
At the time, the losses were worth nearly $400m (about £240m). | At the time, the losses were worth nearly $400m (about £240m). |
It was claimed the Bitcoin losses were caused by a bug - but the Tokyo-based exchange later filed for bankruptcy. | It was claimed the Bitcoin losses were caused by a bug - but the Tokyo-based exchange later filed for bankruptcy. |
MtGox then said it had found some 200,000 of the lost bitcoins. | MtGox then said it had found some 200,000 of the lost bitcoins. |
Mr Karpeles has also been accused of falsifying data and improperly transferring MtGox funds. | Mr Karpeles has also been accused of falsifying data and improperly transferring MtGox funds. |
The French-born former chief executive of the exchange had been held in detention for six weeks without being formally charged, which is allowed under Japanese law. | |
It was not clear if the embezzlement charge was related to all or some of the missing money. | It was not clear if the embezzlement charge was related to all or some of the missing money. |
Japan's Kyodo News said in August that a lawyer acting on Mr Karpeles' behalf denied his client had done anything illegal. | Japan's Kyodo News said in August that a lawyer acting on Mr Karpeles' behalf denied his client had done anything illegal. |
Bitcoin is money that is completely virtual and is regarded as an online version of cash. It can be used to buy products and services. | Bitcoin is money that is completely virtual and is regarded as an online version of cash. It can be used to buy products and services. |
Bitcoin developer Mike Hearn told the BBC last month there was still much confusion over the legal status of Bitcoins in many nations. | Bitcoin developer Mike Hearn told the BBC last month there was still much confusion over the legal status of Bitcoins in many nations. |
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