The truth behind the disappearance of Bitcoin from trading site Mt.Gox has been revealed

According to the Jintou Forex Network, yesterday, it was reported that Mark Karpelès, the founder and president of the bankrupt Bitcoin trading website Mt. Gox, was arrested by Japanese police on suspicion of falsifying transaction data. According to the Japanese media The Japan Times, the Frenchman, who initially insisted that he was innocent, pleaded guilty just after a weekend.

According to reports, Mark Karpelès admitted that he manually modified the data in the trading system in 2013, causing an extra $1 million to appear in the system for no reason; he also admitted that he used fake bitcoins to trade with users, but still insisted that the amount was "between thousands of yen or tens of thousands of yen because these were just some tests", and he also used these "test" fake bitcoins to trade with users.

The Japanese police have also made new progress. According to the Tokyo Metropolitan Police Department, they have new evidence that Karpelès had embezzled at least 1.1 billion yen (about 8.9 million U.S. dollars) of website funds. Now Karpelès will face charges of professional embezzlement.

As for the 650,000 bitcoins stolen after the website was hacked, Karpelès still insisted on denying that he had anything to do with it. However, industry experts have pointed out that the so-called "hacker attack" is completely fake. In fact, the bitcoins hosted on Mt. Gox have been disappearing since 2011; and the large-scale theft was not disclosed until February 2014.

The Tokyo Metropolitan Police Department has not yet disclosed the progress of the investigation, but the report does mention that investigators suspect Karpelès actually knew the detailed information of the lost bitcoins because these bitcoins were transferred from his account to other separate accounts; this looks like a planned, premeditated and organized financial crime, not like the behavior of a hacker who broke into the Mt. Gox system.

Under Japanese law, Japanese police have the right to question suspects for up to three weeks before filing formal charges. It looks like Karpelès won't have an easy time in the short term.