Mt. Gox head Mark Karpeles arrested in Japan

Japanese authorities arrested Mark Karpeles, chief of collapsed bitcoin exchange Mt. Gox, on allegations of manipulating the company’s computer system to inflate the balance of his personal account.

Mark Karpeles, the former CEO of the collapsed bitcoin exchange Mt. Gox, was arrested in Tokyo over the weekend.

The 30-year-old French national is being held on charges of unlawfully extracting and using private electromagnetic records, Japanese media The Yomiuri Shimbun reported.

In a separate report, the New York Times quoted a statement from the Tokyo Metropolitan Police, saying they believe Karpeles manipulated transaction records in Mt. Gox’s trading system to inflate the balance of an account under his name.