Mark Karpeles, the Chief Executive Officer of failed Bitcoin exchange Mt Gox, is one step closer to being thrown in jail with news out of Japan that he has now formally been charged in relation to crimes committed while he was running the now bankrupt exchange.

Karpeles had previously been arrested on two occasions: in late July when he was arrested on the accusation of “fraudulently producing and using private electromagnetic records,” and then again in August on embezzlement charges; under Japanese law a suspect can be arrested and held for three weeks without formal charges being laid.

The formal charges primarily seem to relate to the second arrest, specifically that he misappropriated $2.6 million of deposits from the trading accounts of Mt Gox customers, although Yahoo News reports that the indictment includes Karpeles being charged in relation to falsifying data, suggesting that it’s possible he could have been charged following both arrest investigations.

One of the more bizarre accusations in regards to embezzlement relates to Karpeles alleged acquisition of a bed valued at $48,000, which police say was intended for personal use, but Karpeles’ lawyer denied, saying instead that the “ bed was purchased as interior decoration for his guesthouse, both of which were meant as marketing tools to promote the use of Bitcoins.”

Sadly, so far, none of the arrests or charges appears to relate directly to the hundreds of millions in missing Bitcoin from the exchange versus only a small amount of it.

Going to jail

Japan is said to have a high rate of court convictions, meaning Karpeles is likely going to end up living in a deep, dark, metal cage, forgotten about, much to the joy of many of those who lost millions when the exchange failed.

While it doesn’t provide complete justice to those who have lost money, it’s a start, as Bitcoin investor Kim Nilsson told AFP:

“I’m happy the police have made breakthroughs on investigating the missing fiat money, but it would be unsatisfying if after all this time all we get is a conviction for manipulated records and embezzlement only amounting to a fraction of all the money people lost…It may be better than nothing for the people who want to see someone held responsible, but I think we should be expecting more.”

It’s not clear when Karpeles will face a trial but he is able to apply for bail on the charges while awaiting his day in court.

Karpeles could be facing over a decade behind bars if he is ultimately found guilty.

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