Early reports indicate that the Tokyo District Public Prosecutors Office has indicted Mark Karpeles, the CEO of the collapsed bitcoin exchange Mt. Gox, with embezzlement. These formal charges follow months of allegations of fraud, which culminated in Karpeleâ€™s arrest by the Tokyo Metropolitan Police.

Karpeles was arrested on August 1st but had not been formally charged until today. Liquidations proceeding for Mt. Gox are ongoing and a report detailing creditors claims of $22 billion against the company was released earlier this week. Mt. Gox filed for bankruptcy in February 2014, citing losses of over 750,000 bitcoin held on behalf of customers.

According to the indictment, Karpeles is charged with embezzling over $50 million from Mt. Gox company accounts. This is a developing story and Bitcoin Magazine will continue to update it as more information becomes available.

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