(TOKYO)—The head of the failed Japan-based bitcoin exchange Mt. Gox was arrested in Tokyo on Saturday on suspicion of inflating his cash account by $1 million, authorities said.
Mark Karpeles, 30, is suspected of accessing the exchange’s computer system in February 2013 and inflating his account, Japanese police said. If found guilty, the France-born Karpeles could face up to five years in prison, or a fine of up to 500,000 yen ($4,000).
Karpeles’ lawyer said his client denies wrongdoing, the Kyodo News agency reported.
Mt. Gox went offline early last year. Karpeles said then that tens of thousands of bitcoins …