The Mt. Gox saga continues to get murkier.
Mark Karpeles, the CEO of the collapsed bitcoin exchange, is facing fresh embezzlement charges on Wednesday after authorities revealed a portion of Mt. Gox’s missing funds was spent on a good bang, Japanese media reported.
The 30-year-old Frenchman was arrested in Tokyo last August on allegations of tinkering with company’s data to inflate the balance of his personal account between 2011 and 2013. According to The Japan Times report, Karpeles transferred ¥20 million ($166,000) in client money to his own bank account.
Karpeles reportedly used the money to pay for his personal expenses, including an unspecified sum on prostitutes. Jiji Press, citing police, said it involved “several women whom he met at venues that offer sexual services.”