Mark Karpeles, the former CEO of Mt. Gox, has been actively reassuring potential traders and investors about the reliability and security of his new cryptocurrency exchange, EllipX, following its recent announcement for a September launch.
Given his role as CEO of Mt. Gox during its catastrophic bankruptcy, which resulted in the loss of nearly 950,000 Bitcoins due to security breaches, Mark Karpeles faces a significant challenge in convincing potential traders and investors of the reliability and trustworthiness of his new cryptocurrency exchange, EllipX.
However, despite his previous involvement in Mt. Gox’s collapse, Karpeles is now promoting EllipX as a fully transparent platform. He claims that users will have real-time access to all of the exchange’s data, eliminating the need for trust in those operating the platform and preventing a recurrence of the security breaches that led to Mt. Gox’s downfall.
Mark Karpeles’ Motivation to Launch EllipX
In the interview with TheBlock in X, Mark Karpeles outlined his motivation for launching EllipX, emphasizing the need for significant improvements in the cryptocurrency trading landscape.
He claimed that his past experience including the difficult time in Mt. Gox has made him well-suited to lead EllipX. He understands the risks involved and aims to make EllipX a safer platform for users.
Why EllipX Will Be Based in Europe
EllipX will be based in Europe because Karpeles, who is from France, is more familiar with European regulations. He highlighted the Markets in Crypto-Assets Regulation (MiCA) as a key reason for this decision. Karpeles believes MiCA provides a strong and supportive regulatory environment for crypto exchanges. He added that Japan was not an option due to its strict regulatory focus, which he feels hinders innovation.
EllipX’s Launch and Transparency Promise
Karpeles mentioned that EllipX is set to launch soon, although he did not specify an exact date. He is confident that EllipX will stand out among other crypto exchanges by offering full transparency, with all reserves being audited and publicly available.
Comparing Mt. Gox and FTX
In response to questions about the collapse of FTX and the conviction of its former CEO, Sam Bankman-Fried, Mark Karpeles pointed out differences between the two cases. He highlighted that while FTX customers suffered losses of $8 billion, Mt. Gox experienced even greater financial damages. He added that FTX’s downfall was a result of mismanagement whereas Mt. Gox collapsed due to a hacking. Furthermore, he characterized FTX as a criminal enterprise, further distinguishing it from the circumstances surrounding Mt. Gox.
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