Mt Gox has gone down in the pages of bitcoin history as a great disaster, equivalent to the fall of the city of Pompeii in Roman history. The CEO of now defunct Mt Gox, Mark Karpeles is under investigation by the Japanese police since he was first arrested earlier this month.
Mark Karpeles may be rearrested by the cops in Japan as the investigation continues to unearth new facts, the recent being a four poster bed he had purchased for a sum of $48,000. He has so far been accused of manipulating the exchange computers to inflate Mt Gox’ bitcoin holding by $1 million and embezzlement of funds belonging to Mt Gox customers.
According to sources, a fresh warrant will be issued against Mark Karpeles, who is currently in police custody awaiting formal charges. The new warrant, to be issued tomorrow on fresh embezzlement charges. The new warrant in question is expected to be in connection with his purchase of an expensive bed costing close to $50000. Armed with the new warrant, cops can now prolong his detention for another 3 weeks and interrogate him about his role in the downfall of Mt Gox.
The sources have also informed that Mark Karpeles has denied all allegations against him and he has not confessed to anything so far. While the Japanese investigators believe that they have enough to nail Mark Karpeles on embezzlement charges. Adding fuel to fire is the recent allegations about the $48,000 piece of furniture which he is supposed to have bought using the funds deposited by Mt Gox customers.
However the lawyers representing Mark Karpeles state that the “embezzled” money was utilized to buy necessary software rights on behalf of the company and also the bed was bought as part of the interior decoration elements for furnishing the company’s guest house. In spite of all these, Mark Karpeles has not been accused of bitcoin theft so far. Japanese authorities and independent investigators are still not sure about the reason behind the second arrest warrant