Mt. Gox

Mt. Gox63 posts

Mt. Gox was one of the first Bitcoin exchanges, a place where customers could convert their local currencies into the virtual currency. The site was located in Japan and run by Mark Karpeles, a young French programmer. As Bitcoin increased in value the site experienced technical difficulties, hacking and public relations crises, culminating in the exchanges’ bankruptcy in February 2014, and the loss of hundreds of millions of dollars of users’ funds.

20 Aug, 2015
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Arrest warrant for $2.6 million bitcoin theft

Makes StatementWarrant

After three weeks with no formal charges Japanese police says they will issue a fresh arrest warrant accusing him of pocketing $2.6 million worth of Bitcoin deposits, which was mainly spent on buying software rights, but also includes $48,000 for a luxury bed. Police are also reportedly interested in questioning Karpeles about the disappearance of 850,000 coins worth 48 billion yen last year. They were valued at around $480 million at the time of the disappearance, and $387 million at current exchange rates.

15 May, 2013
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Homeland Security seizes U.S. Dwolla account

Warrant

The US Department of Homeland Security (DHS) issues a warrant (document) to seize money from Mt. Gox’s US subsidiary’s account with payment processor Dwolla. The warrant suggests the US Immigration and Customs Enforcement (ICE), an investigative branch of the DHS, feels the subsidiary, which should have been licensed by the US Financial Crimes Enforcement Network (FinCEN), has been operating as an unregistered money transmitter in the United States.

In order to accept funds in dollars, Mt. Gox opened a Wells Fargo business account for Mutum Sigillum LLC (Mt. Gox’s American subsidiary). The company had to complete a document that states whether it provides money services or not. The warrant reads: “That document was completed on May 20, 2011, and identified Mutum Sigillum LLC as a business not engaged in money services.”

In particular, Karpeles answered no to two important questions: “Do you deal in or exchange currency for your customer?” and “Does your business accept funds from customers and send the funds based on customers’ instructions (Money Transmitter)?”

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