A manager of an exchange for Ripple (XRP) was arrested Wednesday for allegedly stealing ¥1.4 million ($12,470).
Yuki Takenaka, manager and founder of the Ripple exchange, admittedly defrauded Miyagi Prefecture by taking his money while his company was on the verge of implosion and was unable to refund it.
The currency exchange was set up by Takenaka in May of 2014 and by May of 2015, users were unable to withdraw cash.
The company had collected money from its users in exchange for "cash tethers" or IOU's which allowed users to exchange them for Ripple or back into cash.
Additionally, Takenaka allegedly issued ¥120 million in fraudulent tethers.
This is not to be confused with the company Ripple, or the digital currency "XRP". Ripple is not affiliated with Takenaka, his company, or the exchange he ran.