Bitcoin Exchange Chief To Be Undone By $48,000 Four-Poster Bed?

Who doesn't love a memory foam and goose down pillows?
Author:
Publish date:
Updated on

Not the bed in question.

Over at the Financial Times today, you will find a report that Mt Gox chief Mark Karpelès is expected to be rearrested on embezzlement charges, following the disappearance of $500 million of the currency. Originally, Karpelès was arrested on accusations "of manipulating the Mt Gox computer system and inflating the size of his own company account," but apparently Japanese authorities have reason to believe they can change the charges, following revelations that Karpelès is a man who enjoys the finer things in life, things that include a good night's sleep fit for a king or slightly lesser but still pretty important royal.

...after three weeks of interrogation, said those close to the matter, police believe they have enough evidence to accuse Mr Karpelès of embezzlement, alleging he misappropriated $2.6m of deposits from the trading accounts of Mt Gox customers. A substantial portion of that money is thought to have been used to buy software rights on behalf of the company. However, according to police allegations, Y6m ($48,000) was diverted to the purchase of a bed. Police suspect the bed was intended for the personal use of Mr Karpelès.

According to a lawyer for Karpelès, though, such is not the case! There is an excellent excuse for the purchase of the bed, and it involves showing would-be clients what a baller lifestyle bitcoins can afford you.

...the deposits were used for investments in new businesses while the bed was purchased as interior decoration for his guesthouse, both of which were meant as marketing tools to promote the use of bitcoins. The Y6m bed appears to have been part of an effort by Mt Gox to impress potential clients and glamorise the trading of the virtual currency. “It’s too much of a stretch to call this embezzlement,” said Mr Karpelès’s lawyer.

Mt Gox chief Mark Karpelès faces rearrest in bitcoin probe [FT]

Related