MtGox Bitcoin CEO 'misused customer funds': Japanese media

Mark Karpeles, the head of the collapsed MtGox Bitcoin exchange who was arrested in Tokyo, is facing fresh allegations that he misused $8.9 million in customers' deposits, Japanese media reported Sunday.

French-born Karpeles, 30, was arrested on Saturday after a series of fraud allegations led to the Tokyo-based exchange's spectacular collapse last year and hammered the digital currency's reputation.

Karpeles is suspected of manipulating data on the exchange's computer system in 2013 to artificially create about $1.0 million in Bitcoins, while police were also investigating his possible involvement in a massive loss of the virtual currency in 2014.