Ex-CEO of the now imploded Mt. Gox is heading back to the slammer (relatively speaking, he's been in custody for the last 20 days). Mark Karpeles, is going to be arrested for embezzlement according to police. That is, he is going to be charged with stealing 2.6 Million (USD). They "think" they now have enough evidence. Ummmm....


Japanese Police arrested Karpeles a few weeks ago for:

“fraudulently producing and using private electromagnetic records,” to funnel funds into other accounts of which he had control.

In other words, he jacked the funds and padded his own wallet. this comes as no big surprise other than the fact that the Japanese police actually got from point A to point B in a relatively respectable amount of time.

After his previous arrest and questioning, of which he admitted doing some questionable things after first denying them, they've managed to pile up some interconnecting evidence and connect the dots for a new fresh arrest.

It didn't take a year! Now there's progress folks!

Solo? I Think Not

As refreshing as this news may be, it still leaves the question of whether Karpeles did this all by himself, or were other's involved? Seriously, we are talking about millions of dollars here, it's hard to believe that nobody noticed this missing.

There's this thing called a balance sheet, which is accounting 101, and even a piss poor bookkeeper is going to notice a 2.6 million dollar deficit. Undoubtedly there were accomplices, and with enough pressure, we may just see Mark spill the beans in an attempt to save his own ass.

I guess we'll hear some more soon, likely not today, his attorney's have already claimed innocence.


Mt Gox filed bankruptcy last year after falling apart, which leads to another question, have they, or are they going to, confiscate these funds? Will they go back to Mt Gox and be distributed in the bankruptcy claims?

Likely not, Karpeles seems to be living it up currently, although modestly, without much worry for financial aide, so my guess is that hes been living off of this in some way. For instance, his attorney's have defended a bed, one of the assets listed, as a "business expense".

It was a $48,000.00 bed. Business expense? Give me a break.

Yes folks, while you have been suffering all this time without your hard earned coin in which this man embezzled, he bought a 48k bed for his guests. So take comfort in knowing his current bedding is likely about an inch thick and laying on a steel grate.

Japanese police are expected to arrest Karpeles today, we'll report anything further as this story develops.

[UPDATE: Karpeles has been arrested, essentially locking him up for another nice 20 day hiatus behind bars] 

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