Former Mt. Gox CEO Mark Karpeles to Launch New Crypto Exchange EllipX
Mark Karpeles, the former CEO of the now-defunct Mt. Gox cryptocurrency exchange, is set to make his return to the crypto space with the launch of a new exchange, EllipX, in September.
The announcement has caught the attention of the crypto community, given Karpeles’ controversial past and Mt. Gox’s collapse, which resulted in the loss of approximately 850,000 Bitcoin.
EllipX: A New Start for Karpeles
Based in Poland, EllipX will initially cater to European users, with plans to expand globally. While the platform will start as a crypto-only exchange, Karpeles has indicated that the integration of banking and fiat currency services could be on the horizon. EllipX’s core mission is to restore trust in the exchange landscape by prioritizing transparency and security, two areas where Mt. Gox faltered.
Also read: How to Prepare for a Recession: Essential Strategies for Financial Stability
Karpeles emphasized that EllipX would comply with the European Union’s Markets in Crypto-Assets Regulation (MiCA), which outlines a robust framework for crypto asset operations. The platform will also conduct regular third-party audits to promote transparency—an aspect often overlooked by exchanges in the past.
In an interview during Korea Blockchain Week, Karpeles explained that advancements in Bitcoin technology now allow for safer storage of cryptocurrencies, which EllipX will capitalize on. He remarked that many exchanges have not evolved in terms of security since the early days of crypto. “The best way is to lead by example, showing that a fully transparent connection can be built between users and the exchange,” Karpeles said.
Mt. Gox Users Offered Reparations
Karpeles has also announced a gesture of goodwill toward former Mt. Gox users, offering them a 50% discount on EllipX trading fees. This offer is tied to non-fungible tokens (NFTs) that Karpeles released a few years ago for Mt. Gox users as part of a reparations program. However, only a few hundred of the affected million users have claimed these NFTs so far.
Also read: CEX vs DEX: Understanding the Key Differences in Cryptocurrency Trading Platforms
Karpeles hopes the discount will serve as a bridge to reconnect with the community, which was deeply impacted by Mt. Gox’s collapse in 2014. Following the incident, Karpeles faced intense scrutiny and even received death threats. However, he noted that the attitude toward him in the crypto community has softened in recent years. “A couple of years later, people came to me and said, ‘Hey, why don’t you come do a lecture at our conference,’” Karpeles stated.
The Legacy of Mt. Gox
Mt. Gox, which was once the largest Bitcoin exchange, collapsed in 2014 after a massive hack drained hundreds of thousands of BTC. The incident marked one of the darkest moments in cryptocurrency history. However, after years of legal proceedings and rehabilitation efforts, some creditors have begun to receive repayments.
Also read: How to Launch a Crypto Company: A Step-by-Step Guide to Success
In July 2024, Mt. Gox initiated partial repayments to its rehabilitation creditors in Bitcoin (BTC) and Bitcoin Cash (BCH). Despite concerns that these repayments could trigger a sell-off in the market, many creditors have chosen to hold onto their assets, seeing them as long-term investments.
Why Now?
The timing of EllipX’s launch is significant, as the cryptocurrency landscape has matured considerably since the collapse of Mt. Gox. With the introduction of MiCA and a greater emphasis on regulatory compliance, exchanges are now held to higher standards. Karpeles aims to prove that EllipX can succeed where Mt. Gox failed by prioritizing transparency and security.
EllipX’s introduction also comes at a time when Bitcoin continues to be a dominant force in the crypto market. As the industry moves toward greater institutional adoption, the need for secure and compliant exchanges is more critical than ever.
