He was later rearrested for allegedly pocketing about 321 million
yen ($2.7 million) worth of Bitcoin deposits, extending an
initial three-week incarceration during which time police likely
grilled him over the incident.
Japanese prosecutors have charged the head of collapsed Bitcoin exchange MtGox with embezzlement, Jiji Press news agency says © AFP Karen Bleier
Bitcoin's reputation was also damaged when US authorities seized funds as part of an investigation into the online black market Silk Road.
Karpeles was first taken into custody over claims he fraudulently tinkered with data and transferred funds to other firms controlled by him dozens of times between 2011 and 2013.
Tokyo (AFP) - Japanese prosecutors on Friday charged the head of collapsed Bitcoin exchange MtGox with embezzlement, Jiji Press news agency said, amid fraud allegations over the disappearance of hundreds of millions of dollars worth of the virtual currency.
The charges, which could not be immediately confirmed, come after France-born Mark Karpeles, 30, was taken into police custody in Tokyo last month over the affair. It was unclear if the indictment related to all or a part of the missing money.
Karpeles later said he had found some 200,000 of the lost Bitcoins in a "cold wallet" -- a storage device, such as a memory stick, that is not connected to other computers.
Tokyo-based MtGox froze withdrawals in early 2014 and was later shuttered over the missing money, which it said was linked to a bug in the software underpinning Bitcoins that allowed hackers to pilfer them.
He has been held without formal charge for six weeks, as allowed under Japanese law.
Bitcoins are generated by complex chains of interactions among a huge network of computers around the planet, and are not backed by any government or central bank, unlike traditional currencies.
The exchange -- which once boasted it handled around 80 percent of global Bitcoin transactions -- filed for bankruptcy protection soon after the cyber-money went missing.
Backers say virtual currencies allow for an efficient and anonymous way to store and transfer funds online. But critics argue the lack of legal framework governing the currency, the opaque way it is traded and its volatility make it dangerous.
Player at BitStarz Lands a $112.4k Win
An evening of intense playing turned fortunate for a player, as he bagged a whopping $112,400 win from his online bets. The crazy outcome took place at BitStarz, one of the leading online Bitcoin
OneCoin 'License' is a Fake, Says Vietnamese Government
The government of Vietnam is speaking out after promoters of OneCoin – a digital currency investment scheme widely believed to be a fraud – claimed it had been granted a formal license in the country.
Bitcoin speculators are the new day traders
To some market analysts, quiet, expensive stock markets are being overlooked by worrisome speculative activity in products such as bitcoin. The price of the digital currency has surged since the end
Visa, MasterCard, PayPal Under Pressure To Halt Extremist Funding
An action group pressuring payment entities to block funds destined for white supremacists has successfully lobbied PayPal and is going after Visa and MasterCard. SumOfUs, which describes itself
Electrum Bitcoin Wallet Simulates Chain Split on Bitcoin Testnet
Computer science in action, some might say. In the Bitcoin space, we hear a lot of talk about the “danger” of a chain split, and the unending mantra “more hashpower = more security.” Some analysts bel
A petition on Change.org is calling on Amazon to accept bitcoin 'ASAP'
Bitcoin has been soaring to new heights, and now folks on Change.org are calling on e-commerce juggernaut Amazon to accept the cryptocurrency as payment "ASAP."
Blockchain Raises $40 Million from Google Ventures, Virgin Group and Others
Blockchain â the cryptocurrency startup, known for its Bitcoin wallet and block explorer has announced yet another successful funding round. The company has raised a sum of $40 million in the
Nimiq, the World’s First Browser-Based Blockchain, Wants to Unleash the Full Potential of Blockchain Tech
Have you ever tried to tell someone about bitcoin and blockchain technology? If so, chances are the other person wasn’t really excited about it, found it confusing, or didn’t really understand what th