Last week, police re-arrested Mark Karpeles, the CEO of the failed bitcoin exchange Mt Gox, suspecting he misappropriated ¥321m ($2.6m) of customer deposits into other personal projects. He was arrested earlier on August 1 over allegations he had manipulated data to artificially create nearly $1 million worth of Bitcoin.



The latest development in the case, as reported by local media, is that Karpeles has denied the allegations and told Tokyo police that he "was just a victim".



"I want the investigation to find the "real culprit", said Karpeles, according to translated version of the article.



Moreover, the report speaks of a "Mr X" (the alleged founder of Mt Gox), mentioned by an anonymous friend of Karpeles, as reported by CoinDesk.



"The balance of bitcoin was already incorrect when he bought the exchange, but Mr X advised to Karpeles that if Karpeles follow the operational rules decided by Mr X, Karpeles could recover the bitcoin balance, which turned out not to be true," adds the anonymous source in the report.