Karpeles Arrested: More regulation coming to Bitcoin

[JuicyBunny]

Bitcoin exchange chief Karpeles 'manipulated data dozens of times'

Mark Karpeles, the head of defunct Bitcoin exchange MtGox, manipulated its computer system at least 30 times over a couple of years, a report said Monday, as Tokyo promised greater efforts to regulate the digital currency.

The fresh allegation against France-born Karpeles, 30, follows his arrest Saturday by Tokyo police, more than a year after the once-dominant exchange collapsed in the wake of fraud allegations.

Citing investigators, Japan's top-selling Yomiuri newspaper said Monday that Karpeles fraudulently tinkered with data and transferred funds to other firms controlled by him dozens of times between 2011 and 2013.

Police are questioning Karpeles about his alleged spending of customer deposits worth about 1.1 billion yen ($8.9 million), according to public broadcaster NHK and the Yomiuri.

Officially, Karpeles was arrested for allegedly manipulating data in 2013 to artificially create about $1.0 million in Bitcoins.

But police were also investigating his possible involvement in the massive loss of hundreds of millions of dollars worth of the virtual currency last year, local media have said.

In Japan police can hold a suspect without charge for up to three weeks, during which time they may carry out intense interrogations in an attempt to extract a confession. Karpeles is currently in police custody.

In response to the arrest, Tokyo on Monday said it would boost efforts to regulate the crypto-currency in coordination with other G7 countries.

"With respect to virtual currencies such as Bitcoin, we have gathered information and discussed measures" to regulate it, top government spokesman Yoshihide Suga told a regular press briefing.

"At the G7 summit, it was requested that each country introduce regulations from the viewpoint of measures to stop terrorism financing and money-laundering."

More
https://uk.news.yahoo.com/bitcoin-ex...9.html#MtT0t2P

[charlie g]

"regulation" to "stop terrorism financing and money laundering". I read this and smell bullshit. It should read, "regulation" so we can get our cut.

[JuicyBunny]

Originally Posted by charlie g

"regulation" to "stop terrorism financing and money laundering". I read this and smell bullshit. It should read, "regulation" so we can get our cut.

Same thoughts here. Total bullshit to rein in an alternative to traditional world currencies.

[dyna mo]

this guy absconded with 100s of millions of dollars and single-handed almost wiped out bitcoin entirely.



i think some regulations are in order.

[JuicyBunny]

Originally Posted by dyna mo

this guy absconded with 100s of millions of dollars and single-handed almost wiped out bitcoin entirely.



i think some regulations are in order.

I agree completely. Just the people doing it are more interested in killing it perhaps. I like the concept but the silk road types need to go.

[danielpbarron]

Originally Posted by dyna mo

i think some regulations are in order.

It's the whole fiat world that's about to get regulated by bitcoin. Or did you think that the fraudsters that 'fed' you toilet-paper and called it "money" are somehow qualified to say what should and shouldn't be done with regard to finances?

[xXXtesy10]

Originally Posted by danielpbarron

It's the whole fiat world that's about to get regulated by bitcoin. Or did you think that the fraudsters that 'fed' you toilet-paper and called it "money" are somehow qualified to say what should and shouldn't be done with regard to finances?

[j3rkules]

This is the modern day criminal folks.

[CurrentlySober]

i like toilet paper...

[lezinterracial]

Originally Posted by JuicyBunny

I agree completely. Just the people doing it are more interested in killing it perhaps. I like the concept but the silk road types need to go.

Not just silk road stuff. Seems to be the most common way to extort and ransom now. Ransomware from crypto-lockers. Not to mention the extortion emails going out to the people that were hacked via Ashley Madison, They extortionists are asking for bitcoin.

Users seem to be the problem.

[johnnyloadproductions]

Originally Posted by lezinterracial

Not just silk road stuff. Seems to be the most common way to extort and ransom now. Ransomware from crypto-lockers. Not to mention the extortion emails going out to the people that were hacked via Ashley Madison, They extortionists are asking for bitcoin.

Users seem to be the problem.

I had a local computer shop call me and asked if I knew about bitcoin and how to pay off a ransom. Strange.

[TisMe]

Originally Posted by johnnyloadproductions

I had a local computer shop call me and asked if I knew about bitcoin and how to pay off a ransom. Strange.

Not strange at all, ransomware uses a bitcoin payment to get the code to unlock your computer.

[danielpbarron]

Originally Posted by lezinterracial

Seems to be the most common way to extort and ransom now. Ransomware from crypto-lockers.

This only speaks to the strength of bitcoin. No amount of regulation can stop this kind of extortion from taking place. Making it harder to trade your fiat for bitcoin does not make it harder to extort money out of some idiot who is too stupid to properly secure his computer. It only makes it harder for said idiot to get the bitcoin to pay the extortionist. Not only that, but it sets up anyone who might try to help the idiot.