Former CEO Mt. Gox charged with embezzlement

Mark Karpeles, who works at bitcoin exchange Mt. Gox, who was active as CEO, has been formally indicted by the Japanese authorities. He is suspected of embezzling bitcoins. With the disappearance of bitcoins, Mt. Gox bankrupt.

The Japanese prosecutors believe that Karpeles is responsible for the misappropriation of bitcoins, in which he pocketed a value of 2.7 million dollars, converted 2.4 million euros. Fraud is also mentioned in the indictment, AFP news agency reports. Karpeles remains incarcerated by the charges, but can request to be released until a trial is reached. It is not yet clear how many years in prison will be demanded against the former CEO of Mt. gox.

Karpeles was arrested last month by the Japanese police on suspicion of involvement in the large-scale disappearance of bitcoins at Mt. gox. However, he had not yet been formally charged.

The arrest came after the statement of Mt. Gox that bitcoins were lost. The case eventually led to the bankruptcy of the bitcoin exchange. Karpeles has always stated that they had nothing to do with the disappearance of the bitcoins.