Former Mt. Gox CEO Mark Karpeles to Launch New Crypto Exchange, EllipX, in Europe

Mark Karpeles, the former CEO of the now-defunct cryptocurrency exchange Mt. Gox, is making a notable return to the crypto industry with the launch of a new exchange called EllipX. Set to debut this month, the platform will initially target European users from its base in Poland, with ambitions to expand globally. Unlike its predecessor, EllipX promises a more transparent and user-friendly approach, aiming to restore trust in the industry after the collapse of platforms like FTX.

Karpeles, who will serve as Chief Technology Officer, emphasized the importance of full compliance with the Markets in Crypto-Assets (MiCA) regulation, which provides a regulatory framework for the European cryptocurrency market. The choice of Poland for the exchange’s headquarters reflects Karpeles’ familiarity with the country’s regulatory environment, as Mt. Gox once had operations there.

A key feature of EllipX will be its emphasis on transparency—something Karpeles believes is missing from many leading crypto exchanges. “We’re creating an exchange where the trading entity is separate from brokers and custodians,” Karpeles explained. The platform will adopt a structure inspired by the New York Stock Exchange, where independent companies like BitGo will handle the storage and clearing of crypto assets. Brokers, meanwhile, will provide localized services, with all operations subject to third-party audits. This transparency push is a direct response to the lack of operational clarity that contributed to the downfall of FTX.

In addition to regulatory compliance and transparency, EllipX aims to simplify the user experience. Last month, the platform introduced the EllipX Wallet, which uses multi-party computation (MPC) technology to eliminate the need for users to manage cumbersome seed phrases. This innovative approach is designed to make crypto more accessible for newcomers, addressing one of the industry’s major hurdles—user-friendliness.

By combining security, transparency, and ease of use, Karpeles hopes to position EllipX as a standout player in the crowded crypto exchange market. “We’re looking to set a new standard,” he said, signaling a clear departure from the issues that plagued Mt. Gox and other collapsed exchanges. Only time will tell if the hopes meet reality as the platform launches.

Terry Jones
Digital Assets Desk