VIRTUAL CURRENCY
Karpeles heads to court over bitcoin embezzlement charges
Tokyo — The former CEO of collapsed bitcoin exchange MtGox heads to trial in Tokyo this week on charges stemming from the disappearance of hundreds of millions of dollars worth of the virtual currency from its digital vaults. Frenchman Mark Karpeles is facing embezzlement and data manipulation charges. Karpeles was once the high-flying head of the world’s busiest bitcoin trading platform. He reportedly lived in an $11,000-a-month penthouse and spent money lavishly, including on prostitutes. "He is keeping calm as the trial gets under way," his lawyer Kiichi Iino said. Karpeles planned to plead not guilty. The 32-year-old Karpeles was arrested in August 2015. He was released on bail nearly a year later over allegations that he fraudulently manipulated data and pocketed millions worth of bitcoins. MtGox, which claimed it once hosted about 80% of global bitcoin trading, closed down in 2014 after admitting that 850,000 coins — worth about $480m at the time — had disappeared from its vau...
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