MtGox CEO faces likely US arrest as legal woes mount over failed bitcoin exchange

thats what he gets


A federal judge this month ordered Mark Karpeles to appear in Dallas on April 17 to explain how his company, the bankrupt bitcoin exchange MtGox, lost at least $400 million worth of customer deposits. It’s a safe bet that Karpeles won’t turn up in Texas anytime soon.

According to lawyers involved in the bankruptcy process, Karpeles would likely be snatched up by law enforcement as soon as he set foot on American soil.

“I assume he would be arrested,” said Roger Townsend of Breskin Johnson & Townsend, adding that the FBI would likely want to question Karpeles about alleged fraud at MtGox, which collapsed in February, or about connections he may have to the notorious online marketplace, Silk Road.

Townsend speculated that the FBI may already be sitting on a grand jury indictment for Karpeles, and pointed out that the FBI has already arrested Karpeles’ friend, Charlie Shrem, for alleged money-laundering associated with Silk Road.

Townsend made the remarks on…

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