Bitcoin exchange founder faces re-arrest in Japan

Police in Japan will re-arrest the CEO of the collapsed Bitcoin exchange MtGox on theft allegations. Reports say he faces questions over the missing hundreds of millions of US dollars worth of the virtual currency.

Mark Karpeles, 30, was taken into custody earlier this month in Tokyo over claims that he manipulated data to artificially develop about US $1.0 million (£ 660k) worth of the digital money.

Police plan to issue a new arrest warrant accusing him of pocketing US $2.6 million (£1.5 million) worth of Bitcoin deposits.

A report by the Yomiuri newspaper said Karpeles spent most of the money on buying software rights, but also spent a huge chunk on a luxury bed.

Karpeles was first taken into custody over claims that between 2011 and 2013 he fraudulently fiddled with data and transferred funds many times to other firms he also controlled.

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