Former Mt. Gox CEO Launches A New Transparency-Focused Crypto Exchange

Mark Karpeles, former CEO of the defunct cryptocurrency exchange Mt. Gox, is set to launch a new crypto exchange later this month. In an interview with the Block during the Korea Blockchain Week event held in Seoul, South Korea, Karpeles shared details about his latest venture.

Karpeles said the crypto exchange will be transparency-focused and user-friendly. He expressed a clear vision for what the platform will bring to the market.

Karpeles Returns to Crypto with EllipX, a Transparency-focused Exchange

The new platform, EllipX, is slated to launch in Europe, with its operational base established in Poland. Karpeles has a personal connection to the country, as he revealed, Mt.Gox was also based in Poland."

His familiarity with Poland influenced his decision to center the operations of his new exchange there. The exchange is working to fully comply with the Markets in Crypto-Assets (MiCA) regulation.

In his role at EllipX, Karpeles will serve as Chief Technology Officer. He will be primarily responsible for overseeing and guiding the technical development and infrastructure of the platform.

He will focus on creating a secure, reliable, and user-friendly environment for cryptocurrency trading. Hopefully, he can regain the trust he lost at Mt. Gox.

Mark Karpeles emphasized that he will dedicate his new venture, EllipX, to ensuring maximum transparency. In his view, transparency is crucial for building trust and confidence in the rapidly growing crypto industry.

Karpeles pointed out a significant issue in the current market during his discussion. He noticed that people widely recognize and trust the most prominent exchanges like Binance and Coinbase. However, there is a considerable drop in visibility and trustworthiness as you move down the list of the top 100 exchanges.

To address this issue, Karpeles has a strategy centered on clear and compartmentalized operations. His plan involves separating and distinctly managing the various functional components of the trading platform.

Furthermore, he explained that many exchanges today perform multiple roles, which can lead to conflicts of interest and lack of transparency.

Karpeles' New Exchange: Lessons Learned from Mt. Gox

Mark Karpeles plans to structure his new cryptocurrency exchange similarly to the New York Stock Exchange (NYSE). However, he still intends to tailor it specifically for the crypto market.

He explained that he designed this model to enhance transparency, security, and efficiency within the crypto trading ecosystem.

The primary trading entity will focus exclusively on market trading activities, while brokers in different countries will offer localized services to users. This approach mirrors that taken by traditional stock exchanges like the NYSE.

The need for transparent and secure operations has become increasingly paramount, especially after the highly publicized collapse of FTX.

Reflecting on his past, Karpeles shared that the lessons he learned from Mt. Gox have driven his commitment to transparency. The experience has influenced his approach to EllipX as he strives to build an exchange to regain users' trust.

Mt. Gox was once the largest Bitcoin exchange globally. However, it suffered a catastrophic security breach in 2014 and lost at least 850,000 BTC. After nearly a decade of legal and financial proceedings, Mt.Gox began repaying creditors earlier this year.

In a recent post on X, Mark Karpeles announced that owners of Mt. Gox NFTs will receive special discounts on trading fees on EllipX. Additionally, all former Mt.Gox customers who used the exchange between 2010 and 2014 can receive the NFT for Free.

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