Karpeles is arrested at his home by Japanese police who say he accessed a computer system and falsified data on its outstanding balance. Police say Karpeles protested at his arrest and said he will not sign any documents until his lawyer arrives. The Tokyo Metropolitan Police say they believe Karpeles had manipulated transaction records on a computer system that Mt. Gox used to swap Bitcoins for dollars, and had “unjustly inflated the balance” of an account held under his name:
He created false information that $1 million had been transferred into the account, when in fact it had not been.
Karpeles has not been formally charged. Police can detain him for up to 23 days before charging him.