Former Mt.Gox CEO to Launch European Exchange And “Make Right What Went Wrong”

Journalist

Tanzeel Akhtar

Journalist

Tanzeel Akhtar

About Author

Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk and Bitcoin Magazine.

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Last updated:

September 4, 2024 05:41 EDT

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Mark Karpelès, the former CEO of the infamous cryptocurrency exchange Mt. Gox, is set to launch a new European exchange called EllipX, headquartered in Poland.

In an announcement during KBW2024, Karpelès said the exchange is scheduled for launch later this month. Karpelès is intent on making a return to the cryptocurrency industry after a turbulent past.

He told CryptoNews the aim is to “make right what went wrong” with Mt. Gox, a platform that once dominated the Bitcoin trading world before its catastrophic collapse in 2014.

Who is Mark Karpelès?

Karpelès, is a French-born entrepreneur and programmer became an important figure in the crypto space as the CEO of Mt. Gox. He acquired the exchange in 2011 when it was already handling over 70% of the world’s Bitcoin transactions.

Under Karpelès’ leadership, Mt. Gox grew rapidly, becoming synonymous with Bitcoin trading during the early years of cryptocurrency.

However, Karpelès’ tenure at Mt. Gox was marred by significant challenges, culminating in one of the largest scandals in the history of crypto.

In early 2014, Mt. Gox abruptly shut down and filed for bankruptcy after revealing that approximately 850,000 Bitcoins, valued at around $450 million at the time, had been stolen due to a security breach. This event shook the entire crypto industry, leading to a prolonged legal and financial battle that left many customers in limbo.

The collapse of Mt. Gox had a profound impact on the market, eroding trust in digital currencies. Karpelès was arrested in Japan in 2015 on charges related to embezzlement and data manipulation. He was later found guilty of falsifying financial records but was acquitted of embezzlement. Despite the acquittal, Karpelès’ reputation was severely tarnished, and he became a controversial figure in the crypto world.

In the years following the Mt. Gox collapse, efforts have been made to repay the exchange’s creditors. Karpelès told CryptoNews that over 50% of Mt. Gox customers have been repaid, with ongoing efforts to settle remaining claims.

EllipX: New Beginning?

EllipX represents Karpelès’ attempt at redemption. The exchange will operate under strict regulatory standards, aiming to restore trust and confidence in cryptocurrency trading.

By launching EllipX, Karpelès seeks to demonstrate that he has learned from the mistakes of the past and is committed to providing a secure and reliable platform for European crypto traders.

Karpelès’ return to the industry will undoubtedly be met with scrutiny, but he remains determined to “make right what went wrong” with Mt. Gox, hoping to leave a more positive legacy in the cryptocurrency world with EllipX.

KBW2024 Taking Place in Seoul This Week

Korea Blockchain Week (KBW2024) is taking place in Seoul, South Korea this week, 1-7 September, bringing together a global audience of blockchain enthusiasts, developers, investors, and industry leaders. The country is making its mark and leading on the Web3 and blockchain front.

Speakers include Vitalik Buterin, Arthur Hayes, Brad Garlinghouse, Richard Teng, and more.