Failed bitcoin exchange chief Karpeles arrested in Japan

TOKYO (AP) — Japanese police have arrested Mark Karpeles, head of Mt. Gox, a failed bitcoin exchange on suspicion of inflating his cash account by $1 million.

Kyodo News service is quoting Karpeles’ lawyer as saying his client is denying any wrongdoing.

Tokyo Metropolitan Police says the 30-year-old was arrested Saturday. He is accused of accessing the exchange’s computer system in February 2013 and inflating his cash account.

If found guilty, he could face up to five years in prison, or a fine of up to 500,000 yen ($4,000).

Mt. Gox went offline early last year.

Karpeles said then that tens of thousands of bitcoins worth several hundred million dollars were unaccounted for, and suggested they were stolen.

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