According to the indictment, Karpeles, 32, embezzled a total of 341 million yen in 2013 by transferring customers' money to his account. He allegedly used the funds for purposes such as buying a luxury bed and the right to develop software.

Karpeles offered a deep apology for causing trouble to a number of customers. But he denied the allegations, claiming that he spent less than he earned and made reports to his accountant.

Meanwhile, prosecutors said that MtGox failed to separately manage customer money and corporate funds. A MtGox employee once asked Karpeles how much customer money he used and whether he covered deficits with such funds, they said. (Jiji Press)