Mt Gox saga continues as former CEO Mark Karpeles arrested in Tokyo

It seems like Mt Gox just won’t go away.

The failed Bitcoin exchange made the news again this weekend, just days after a deadline passed for filing bankruptcy claims against the company.

Mark Karpeles, former CEO of Mt Gox, was led away by Tokyo police in a T-shirt and baseball cap pulled low across his face after an arrest warrant was issued for him. Karpeles is apparently suspected of having accessed Mt Gox’s computer system in February 2013, artificially inflating the value of his account. If found guilty, Karpeles faces up to five years in prison or a fine of up to 500,000 yen (or $4,034).

bitcoin mt goxThe arrest is not necessarily linked to the failure of Mt Gox last year. However Tokyo police have maintained that the bankruptcy of Mt Gox, caused by the disappearance of hundreds of millions of dollars worth of Bitcoin, was likely an inside job.

Karpeles has maintained that Mt Gox’s fate was caused by hackers who illegally accessed Mt Gox’s systems.

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