AUG 3 DIGEST: Mark Karpelès Admits to Tweaking MtGox Account; Overstock Sells US$5m Cryptobond

Former MtGox CEO Mark Karpelès is believed to have manipulated his own account on the bitcoin exchange by millions of dollars but only admitted to tweaking it several thousand yen; Overstock has sold a US$5 million “cryptobond” to New York-based trading firm FNY Managed Accounts, and more top stories for August 3.

Mark Karpelès Admits to Tweaking MtGox Account, Allegedly Misused US$8.9m of Customer Deposits

Former MtGox CEO Mark Karpelès, who is currently under arrest in Tokyo, is believed to have manipulated and padded his own cash account on the bitcoin exchange by millions of dollars. Karpelès is suspected of misusing the funds privately and sending them to his other firms. The former CEO has admitted to tweaking the amount of a bitcoin account to “the range of several thousand yen or several tens of thousands of yen,” but said this was just to test a computer system.

Overstock Sells US$5m Cryptobond to New York Trading Firm

US retail giant Overstock has sold a US$5 million “cryptobond” to New York-based trading firm FNY Managed Accounts. The sale is part of a proof of concept from the Utah-based e-tailer showcasing how financial instruments can be digitized and traded on cryptographic distributed ledgers such as Bitcoin's blockchain.

Ethereum Launches; But Leaked Chat Says Project Needs ‘Years More’

The first live implementation of the Ethereum project called “Ethereum Frontier” was released this week, but leaked communications between developers suggest that the project’s future may be under question. Just a couple of months ago, Ethereum team member Matt Liston worried that the project needed “years more of development.”