Mt. Gox’s Former CEO to Launch New “Transparent” Crypto Exchange

Mark Karpeles, the former CEO of the defunct Bitcoin exchange Mt. Gox, has revealed plans to launch a new crypto exchange called EllipX Exchange. This new platform promises to be “more secure and transparent” than Mt. Gox, which collapsed due to a severe security breach in February 2014.

Karpeles will be the new exchange’s chief technology officer (CTO).

Mt. Gox Users to Benefit from New Exchange

EllipX Exchange’s founder explained that Mt. Gox customers between 2010 and 2014 will enjoy certain perks from the new exchange. These customers can redeem a Mt. Gox NFT for free, and owning the digital collectible unlocks discounted trading fees.

Mt. Gox’s cataclysmic downfall began in February 2014, when the exchange was hacked for $400 million worth of BTC at the time. Today, the BTC stash is valued at approximately $45 billion. Later that month, the exchange filed for bankruptcy protection.

Fast-forward to the present. The defunct Bitcoin exchange has commenced repayment to creditors. Karpeles believes it is a good time to introduce a new crypto exchange when Mt. Gox repayments have started.

The EllipX CTO added that Ungox, an independent non-profit ratings agency he introduced years ago, will launch soon.

Will the Exchange Win Investors’ Trust?

Karpeles assured users that EllipX Exchange will harness “technology that would have prevented MtGox’s failure.”

He also revealed that the new exchange will be accompanied by a self-custodial wallet using MPC technology, offering an intuitive user experience similar to banking apps. Introducing a self-custodial wallet allows investors to safeguard their digital assets fully away from censorship.

It remains uncertain how well investors will embrace EllipX Exchange, given its founder’s history with Mt. Gox. At the time of writing, the crypto exchange had less than 300 followers on X. To calm investors’ nerves, Karpeles appeared at a fireside chat with industry leaders at the KoreaBlockchainWeek 2024 event.