Japanese media, citing police, have said investigators suspect
Karpeles knew details about the missing Bitcoins -- which were
transferred by his exchange to a separate account -- without
The MtGox exchange -- which once boasted of handling around 80 percent of global Bitcoin transactions -- filed for bankruptcy protection soon after the cyber-money went missing, admitting it had lost 850,000 coins worth 48 billion yen ($387 million). They were worth about $480 million at the time of the disappearance.
He was sent to the Tokyo District Public Prosecutors' Office Sunday morning for further questioning, public broadcaster NHK said.
Mark Karpeles, CEO of the collapsed MtGox bitcoin exchange, is facing fresh allegations that he misused $8.9 million in customers' deposits, reports say © Jiji Press/AFP/File
He is suspected of misusing the funds privately and sending them to his other firms, the news reports said.
Under the Japanese criminal justice system, police can hold a suspect without charge for up to three weeks, during which time they may carry out vigorous interrogations in an attempt to extract a confession.
An illustration photo shows a Bitcoin (virtual currency) paper wallet with QR codes and a coin are seen at La Maison du Bitcoin in Paris Thomson Reuters
Karpeles is suspected of manipulating data on the exchange's computer system in 2013 to artificially create about $1.0 million in Bitcoins, while police were also investigating his possible involvement in a massive loss of the virtual currency in 2014.
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.
Karpeles reportedly denied all allegations. Immediate comments from his lawyers were not available.
Police are expected to rearrest him on suspicion of professional embezzlement over the suspected misuse of funds, the Yomiuri said, quoting police sources.
The global virtual currency community was shaken by the shuttering of MtGox, which froze withdrawals in early 2014 because of what the firm said was a bug in the software underpinning Bitcoins that allowed hackers to pilfer them.
Tokyo (AFP) - Mark Karpeles, the head of the collapsed MtGox Bitcoin exchange who was arrested in Tokyo, is facing fresh allegations that he misused $8.9 million in customers' deposits, Japanese media reported Sunday.
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.
French-born Karpeles, 30, was arrested on Saturday after a series of fraud allegations led to the Tokyo-based exchange's spectacular collapse last year and hammered the digital currency's reputation.
Investors have demanded answers from Karpeles and called on the firm's court-appointed administrators to publicise its data so that hackers around the world can help analyse what happened at MtGox.
Police now suspect that he illegally spent customer deposits worth about 1.1 billion yen ($8.9 million), according to NHK and the best-selling Yomiuri newspaper said.
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