Former Mt. Gox CEO Says New Exchange Will Be “Transparent”

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As a seasoned crypto investor with a bit of a skeptical streak, I must admit that I was initially taken aback by Mark Karpeles’ announcement about his new exchange, EllipX. After all, he was at the helm when Mt. Gox went bankrupt, and I can’t help but wonder if history might repeat itself. However, I find myself intrigued by his bold claims of transparency and a fully audited platform.

Mark Karpeles, former CEO of Mt. Gox, assures users about the trustworthiness of his latest cryptocurrency exchange, EllipX, even though he led Mt. Gox during its bankruptcy. He emphasizes that he plans to approach things differently with EllipX and believes his past experience qualifies him as the ideal leader for this new venture.

Former Mt. Gox CEO Says New Exchange Will Be Transparent

In a live chat on X, Mark Karpeles, the former head of Mt. Gox, expressed that his upcoming cryptocurrency exchange will prioritize transparency. He aimed to convince crypto users that they can rely on him with their funds, despite his past involvement in the Mt. Gox bankruptcy. It was under Karpeles’ leadership that the Japanese-based platform suffered losses of up to 950,000 BTC due to a sequence of hacks on the system.

As an analyst, I’d like to share my perspective on the assurances made by Karpeles for his EllipX exchange. He has guaranteed that the circumstances we’ve seen before won’t repeat themselves. His emphasis is on transparency and regular audits. This means users won’t have to blindly trust those in charge, including him, because they can access real-time data about the exchange at all times, ensuring accountability and openness.

Simultaneously, Mark Karpeles shared his reasoning behind launching another cryptocurrency exchange, despite his troubles with Mt. Gox and a 12-month imprisonment in Japan. He expressed confidence that there is still significant room for improvement in the field of crypto trading services. Furthermore, he emphasized his extensive experience, as he understands potential pitfalls when managing a cryptocurrency exchange.

Why EllipX Will Be Based In Europe

Karpeles’ EllipX project plans to set up its base within Europe. In justification of this decision, the previous CEO of Mt. Gox stated that he hails from France and has a good understanding of European laws. He disclosed that the Markets in Crypto-Assets Regulation (MiCA) played a significant role in this choice, expressing his belief that MiCA is the most comprehensive crypto regulation available today. He further added that the MiCA regulations would create an ideal regulatory landscape for smooth business operations.

Mark Karpeles suggested that Japan was not a feasible location for the new cryptocurrency exchange due to the strict regulatory focus of Japanese authorities, who he believes prioritize rules over fostering innovation in this field.

The former Mt. Gox CEO revealed that the EllipX exchange will start operating sometime this month, although he couldn’t give a specific launch date. Karpeles is confident that the new exchange will compete with the best crypto exchanges in terms of transparency since all their reserves will be audited and made public.

Drawing A Similarity Between Mt. Gox And FTX

Previously, the CEO of Mt. Gox was questioned about his feelings following the fall of FTX and the conviction of its ex-CEO, Sam Bankman-Fried. However, he pointed out that the $8 billion lost by FTX’s customers paled in comparison to the losses experienced by Mt. Gox customers. He also emphasized the distinct circumstances between the two platforms, explaining that Mt. Gox was hacked while FTX crumbled due to Bankman-Fried’s misconduct. Furthermore, he asserted that FTX operated as a criminal organization.

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2024-09-11 14:14