Mark Karpeles, the former CEO of the notorious cryptocurrency exchange Mt. Gox, is set to launch a new exchange called EllipX in September. EllipX will operate out of Poland, initially targeting European users, with future plans for global expansion. The exchange will begin as a crypto-only platform but may integrate banking and fiat currency services later.
Complying with MiCA and Offering Reparations
EllipX will adhere to the European Union’s Markets in Crypto-Assets Regulation (MiCA), a framework designed to ensure security and transparency in the digital asset market. To further enhance trust, EllipX will undergo regular third-party audits to verify its compliance.
One of EllipX’s notable features is its offering of fee discounts to former Mt. Gox users, who were affected by the exchange’s infamous collapse in 2014. Karpeles has promised at least a 50% reduction in trading fees for these users. The discount is linked to non-fungible tokens (NFTs) that Karpeles released specifically for Mt. Gox users. However, only a few hundred of the million users impacted by the hack have claimed these NFTs so far.
Why Launch EllipX Now?
Karpeles emphasized that the advancements in cryptocurrency technology and security have now reached a point where crypto exchanges can ensure the safe storage of digital assets. He also noted that while the crypto market has evolved, many exchanges still operate without full transparency.
Karpeles expressed his vision for EllipX:
“Exchanges didn’t change much in all those times, I think the best way would be basically to lead by example, to show that connection can be built in a fully transparent way.”
By prioritizing transparency and user protection, Karpeles hopes to set a new standard for exchanges moving forward.
Also Read: Mt. Gox Transfers Billions in Bitcoin for Creditor Payouts
Rebuilding Trust and Community Response
Karpeles is also focused on rebuilding trust with the crypto community. The launch of EllipX, coupled with the fee-cutting reparations for former Mt. Gox users, is part of his effort to reconnect with those who lost funds during the Mt. Gox collapse.
Despite receiving death threats in the wake of the hack, Karpeles mentioned that the community’s attitude toward him has softened over time. Reflecting on his current involvement in the crypto space, Karpeles shared:
“I didn’t even expect to be at a Bitcoin conference ever again related to crypto […] a couple of years later, people actually came to me and told me, hey, why don’t you come do a lecture at our conference.”
Mt. Gox Repayments Continue
While Karpeles looks to the future with EllipX, Mt. Gox’s long-standing legal and financial repercussions continue. As of July 5, the exchange began repaying its rehabilitation creditors through designated crypto exchanges. These repayments were made in Bitcoin (BTC) and Bitcoin Cash (BCH). At the time, Mt. Gox Trustee’s total BTC balance stood at 94,457 BTC, according to the MtGoxBalanceBot.
Contrary to expectations of a massive sell-off following the repayments, many creditors have opted to hold onto their assets after waiting nearly a decade to recover their funds.
