August 1, 2015 10:54 AM

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Tokyo metropolitan police arrests 30-year-old French CEO of a failed Bitcoin exchange company

In Japan, Tokyo metropolitan police have arrested the 30-year-old French CEO of a failed Bitcoin exchange company. Police suspect Mark Karpeles padded his Bitcoin outstanding balance by illegally manipulating his company's computer system. His Tokyo based company, MtGox, suddenly stopped all trading in February last year and filed for bankruptcy.Karpeles announced that 650 thousand bitcoins, worth more than eight billion yen at that time, had disappeared. He claimed the exchange collapsed after hackers stole most of his clients' Bitcoins. But police say most of the Bitcoins held by the company were sent to another account. Police believe Karpeles knows what happened to the virtual money.

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