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CEO of Mt. Gox steals millions of dollars worth of Bitcoins to pay for prostitutes

By Mason White 7:20 PM October 31, 2015
Prostitutes illustration 

By: Feng Qian
The CEO of Bitcoin exchange Mt. Gox, was arrested on a charge of embezzlement after allegedly stealing millions of dollars worth of Bitcoins to fund his affairs with prostitutes, police in Japan said.

Tokyo police said that they have arrested 30-year-old Mark Karpeles, after allegedly using millions of dollars worth of Bitcoins to fund his luxurious lifestyle.

According to the police investigation, Karpeles transferred 20 million yen ($165,816) of customer funds to his own bank accounts.

Part of the embezzled funds were used for living expenses and the women he met at brothels. Karpeles denies the allegations, saying that the funds were not used for his personal living expenses.

Karpeles was also charged with the fraudulent transfer of Mt. Gox funds to other companies he controlled.

He is accused of embezzling more than 320 million yen ($2.65 million) worth of Bitcoins. Last year, Mt. Gox shut down after 850,000 Bitcoins ($256 million) disappeared.