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

Former Mt. Gox CEO Mark Karpeles has explained to crypto users why they can trust his new crypto exchange, EllipX, despite being at the helm when Mt. Gox went bankrupt. Karpeles remarked that he intends to do things differently with the new crypto exchange and believes his experience makes him the right person to lead EllipX.

Former Mt. Gox CEO Says New Exchange Will Be Transparent

Former Mt. Gox CEO Mark Karpeles mentioned in a live broadcast on X that his new crypto exchange will be transparent while explaining why crypto users can trust him with their money despite his history with the Mt. Gox bankruptcy. Karpeles was the CEO when the Japanese-based exchange lost up to 950,000 BTC in a series of hacks on the platform.

However, Karpeles has assured prospective users of his EllipX exchange that a similar situation won’t occur. He declared that the platform would be fully transparent and audited. As such, users will not need to trust those in charge, including him, since they can see all data regarding the exchange in real-time.

Meanwhile, Mark Karpeles also explained why he thought it was best to launch another crypto exchange despite his woes with Mt. Gox, which led him to spend 12 months in a Japanese jail. He stated that he believes much is still needed regarding crypto trading services. He added that he has the best experience since he knows what could go wrong when heading a crypto exchange.

Why EllipX Will Be Based In Europe

Karpeles’ EllipX will be based in Europe. While explaining the reason for this move, the former Mt. Gox CEO mentioned that he is from France and is familiar with European regulations. He revealed that the Markets in Crypto-Assets Regulation (MiCA) was a major factor, asserting that MiCA is the best crypto regulation and will provide a conducive regulatory environment in which to operate.

Mark Karpeles also indicated that Japan wasn’t an option for the new crypto exchange because of the Japanese regulators, who he claims are more focused solely on regulations rather than supporting innovations.

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

The former Mt. Gox CEO was asked if he felt any relief after FTX’s collapse and the conviction of its former CEO, Sam Bankman-Fried. However, he noted that the $8 billion that FTX customers lost was nothing compared to the loss that Mt. Gox customers suffered. He also highlighted differences between Mt. Gox and FTX’s situation, as the former was hacked while the latter collapsed thanks to Bankman-Fried’s mismanagement. He added that FTX was run as a criminal enterprise.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, Boluwatife is an avid basketball lover and a part-time degen.

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