Mark Karpelès: Difference between revisions

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	\| birth_place = ], France		\| birth_place = ], France
	\| birthname = Mark Marie Robert Karpelès		\| birthname = Mark Marie Robert Karpelès
			\| othername = MagicalTux
	\| occupation = ]		\| occupation = ]
	\| known_for = Former CEO of ]		\| known_for = Former CEO of ], Founding Member at ]
	\| citizenship = France		\| citizenship = France
	\| alma_mater =		\| alma_mater =
	\| website =		\| website =
	}}		}}
	'''Mark Marie Robert Karpelès'''<ref name="US Bankruptcy Court case 14-31229-sgj15"/><ref name=farivar2014/> (born 1 June 1985) is the former CEO of ] exchange ].<ref name=copainsdavant/><ref>{{cite news\|url= https://www.forbes.com/sites/leoking/2014/02/26/mt-gox-ceo-mark-karpeles-i-am-still-in-japan/ \|title= Mt. Gox CEO Mark Karpeles: 'I am still in Japan' \|date= 2014-02-26 \|work= Forbes \|last= King \|first= Leo \|access-date= 2014-02-27}}</ref> Born in France, he moved to Japan in 2009.<ref>{{cite news \|last1=Warnock \|first1=Eleanor \|last2=Mochizuki \|first2=Takashi \|date=2014-02-28 \|title=Bitcoin's Mt. Gox: a look at the man in charge \|url=https://online.wsj.com/news/articles/SB10001424052702304071004579407022025451070 \|work=The Wall Street Journal}}</ref><ref>{{cite news \|last=Philippe \|first=Berry \|date=2014-02-27 \|title=MtGox: Mark Karpèles, un "supergeek" français au cœur du scandale bitcoin \|url=http://www.20minutes.fr/high-tech/1309930-20140227-mtgox-mark-karpeles-entrepreneur-francais-coeur-scandale-bitcoin \|access-date=2014-02-27 \|work=20 Minutes \|language=fr}}</ref> Under his leadership, Mt. Gox was the world's largest ], handling over 70% of all bitcoin transactions at its peak~~, before it filed for bankruptcy~~ in 2014.<ref>{{Cite web \|date=2024-07-08 \|title=Bitcoin rebounds to $57,000 after billions in Mt. Gox refunds fueled a selloff \|url=https://qz.com/bitcoin-rebounds-mt-gox-selloff-1851580645 \|access-date=2024-07-11 \|website=Quartz \|language=en}}</ref><ref>{{Cite web \|date=2024-07-08 \|title=Germans, Mt. Gox, or Feds: Who Caused the Bitcoin Dip? \|url=https://www.financemagnates.com/cryptocurrency/germans-mt-gox-or-feds-who-caused-the-bitcoin-dip/ \|access-date=2024-07-11 \|website=Financial and Business News {{!}} Finance Magnates \|language=en}}</ref><ref>{{Cite web \|last=Zielinski \|first=Radek \|date=2024-07-08 \|title=Mt. Gox to repay investors in Bitcoin \|url=https://readwrite.com/mt-gox-to-repay-investors-in-bitcoin/ \|access-date=2024-07-11 \|website=ReadWrite \|language=en-US}}</ref> ~~Karpelès~~ ~~was~~ ~~subsequently~~ ~~arrested~~ ~~and~~ ~~convicted~~ of ~~data~~ ~~manipulation~~ ~~related~~ to ~~his~~ ~~role~~ at Mt. Gox.		'''Mark Marie Robert Karpelès'''<ref name="US Bankruptcy Court case 14-31229-sgj15"/><ref name=farivar2014/> (born 1 June 1985), also sometimes known by his online alias '''MagicalTux''', is the former CEO of ] exchange ].<ref name=copainsdavant/><ref>{{cite news\|url= https://www.forbes.com/sites/leoking/2014/02/26/mt-gox-ceo-mark-karpeles-i-am-still-in-japan/ \|title= Mt. Gox CEO Mark Karpeles: 'I am still in Japan' \|date= 2014-02-26 \|work= Forbes \|last= King \|first= Leo \|access-date= 2014-02-27}}</ref> Born in France, he moved to Japan in 2009.<ref>{{cite news \|last1=Warnock \|first1=Eleanor \|last2=Mochizuki \|first2=Takashi \|date=2014-02-28 \|title=Bitcoin's Mt. Gox: a look at the man in charge \|url=https://online.wsj.com/news/articles/SB10001424052702304071004579407022025451070 \|work=The Wall Street Journal}}</ref><ref>{{cite news \|last=Philippe \|first=Berry \|date=2014-02-27 \|title=MtGox: Mark Karpèles, un "supergeek" français au cœur du scandale bitcoin \|url=http://www.20minutes.fr/high-tech/1309930-20140227-mtgox-mark-karpeles-entrepreneur-francais-coeur-scandale-bitcoin \|access-date=2014-02-27 \|work=20 Minutes \|language=fr}}</ref> Under his leadership, Mt. Gox was the world's largest ], handling over 70% of all bitcoin transactions at its peak in 2014.<ref>{{Cite web \|date=2024-07-08 \|title=Bitcoin rebounds to $57,000 after billions in Mt. Gox refunds fueled a selloff \|url=https://qz.com/bitcoin-rebounds-mt-gox-selloff-1851580645 \|access-date=2024-07-11 \|website=Quartz \|language=en}}</ref><ref>{{Cite web \|date=2024-07-08 \|title=Germans, Mt. Gox, or Feds: Who Caused the Bitcoin Dip? \|url=https://www.financemagnates.com/cryptocurrency/germans-mt-gox-or-feds-who-caused-the-bitcoin-dip/ \|access-date=2024-07-11 \|website=Financial and Business News {{!}} Finance Magnates \|language=en}}</ref><ref>{{Cite web \|last=Zielinski \|first=Radek \|date=2024-07-08 \|title=Mt. Gox to repay investors in Bitcoin \|url=https://readwrite.com/mt-gox-to-repay-investors-in-bitcoin/ \|access-date=2024-07-11 \|website=ReadWrite \|language=en-US}}</ref> In September 2024, Karpeles announced the upcoming launch of ],<ref>{{Cite web \|last=Bescont \|first=Jérémy Le \|date=2024-09-11 \|title=Crypto : 10 ans après le scandale MtGox, Mark Karpelès est de retour \|url=https://www.capital.fr/crypto/crypto-10-ans-apres-le-scandale-mtgox-mark-karpeles-est-de-retour-1502131 \|access-date=2024-09-12 \|website=Capital.fr \|language=fr}}</ref> a new ] compliant cryptocurrency exchange, where he serves as ] (CTO).<ref>{{Cite web \|date=2024-09-04 \|title=Dix ans après la faillite de Mt. Gox, Mark Karpelès revient avec une nouvelle plateforme de cryptos \|url=https://www.lesechos.fr/finance-marches/marches-financiers/cryptos-mark-karpeles-lance-un-successeur-a-mt-gox-2116845 \|access-date=2024-09-07 \|website=Les Echos \|language=fr}}</ref><ref>{{Cite web \|last=Reynolds \|first=Sam \|date=2024-09-04 \|title=Mt. Gox Wouldn't Have Happened With Modern Tools, Mark Karpeles Says \|url=https://www.coindesk.com/business/2024/09/04/mt-gox-wouldnt-have-happened-with-modern-tools-mark-karpeles/ \|access-date=2024-09-07 \|website=www.coindesk.com \|language=en}}</ref>

	==Early life and education==		==Early life and education==
	Born in ], France, he is the child of ~~geologist~~ Anne-Robert Karpelès.<ref name=lejsl>{{cite news\|url= http://www.lejsl.com/saone-et-loire/2014/03/01/un-qi-superieur-a-la-moyenne \|work= Le Journal de Saône et Loire \|date= 2014-01-03 \|first= Vincent \|last= Gautronneau \|language= fr \|title= Le génie côte-d'orien qui fait trembler le net }}</ref> He was raised in ].<ref name=lejsl/><ref name=mick2014>{{cite news \|last= Mick \|first= Jason \|date= 5 March 2014 \|title= Bitcoin King: Mt. Gox CEO Mark Karpelès' History of Arrests, Firings \|url= http://www.dailytech.com/Bitcoin+King+Mt+Gox+CEO+Mark+Karpels+History+of+Arrests+Firings/article34442.htm \|newspaper= ] \|access-date= 9 March 2014 \|archive-url= https://web.archive.org/web/20140309102115/http://www.dailytech.com/Bitcoin+King+Mt+Gox+CEO+Mark+Karpels+History+of+Arrests+Firings/article34442.htm \|archive-date= 9 March 2014 \|url-status= dead }}</ref> ~~From~~ 1995 to 2000, he ~~attended~~ Collège Prieuré de Binson in ], near ].<ref name=copainsdavant>{{cite web\|url= http://copainsdavant.linternaute.com/p/mark-robert-karpeles-4285933 \|title= Mark Robert KARPELÈS, 28 ans (TOKYO, CHATILLON SUR MARNE, PARIS) \|work= Copains d'avant – L'Internaute \|publisher= CCM Benchmark Group \|language= fr \|access-date= 2014-02-27}}</ref> He then spent one year at ] Claude Bernard in Paris before completing his education in 2003 at Lycée Louis Armand in Paris.<ref name=copainsdavant/>		Born in ], France, he is the child of Anne-Robert Karpelès, a geologist.<ref name=lejsl>{{cite news\|url= http://www.lejsl.com/saone-et-loire/2014/03/01/un-qi-superieur-a-la-moyenne \|work= Le Journal de Saône et Loire \|date= 2014-01-03 \|first= Vincent \|last= Gautronneau \|language= fr \|title= Le génie côte-d'orien qui fait trembler le net }}</ref> He was raised in ].<ref name=lejsl/><ref name=mick2014>{{cite news \|last= Mick \|first= Jason \|date= 5 March 2014 \|title= Bitcoin King: Mt. Gox CEO Mark Karpelès' History of Arrests, Firings \|url= http://www.dailytech.com/Bitcoin+King+Mt+Gox+CEO+Mark+Karpels+History+of+Arrests+Firings/article34442.htm \|newspaper= ] \|access-date= 9 March 2014 \|archive-url= https://web.archive.org/web/20140309102115/http://www.dailytech.com/Bitcoin+King+Mt+Gox+CEO+Mark+Karpels+History+of+Arrests+Firings/article34442.htm \|archive-date= 9 March 2014 \|url-status= dead }}</ref> Between 1995 and 2000 he was educated at Collège Prieuré de Binson in ], near ].<ref name=copainsdavant>{{cite web\|url= http://copainsdavant.linternaute.com/p/mark-robert-karpeles-4285933 \|title= Mark Robert KARPELÈS, 28 ans (TOKYO, CHATILLON SUR MARNE, PARIS) \|work= Copains d'avant – L'Internaute \|publisher= CCM Benchmark Group \|language= fr \|access-date= 2014-02-27}}</ref> He then spent one year at ] Claude Bernard in Paris before completing his education in 2003 at Lycée Louis Armand in Paris.<ref name=copainsdavant/>
	<!-- Do not add back without discussion --- According to ]'s Jason Mick, Karpelès was found guilty of a financial computer crime and of money transfer fraud when he was somewhere between 13 and 18 years old. The court gave him a 3 month ] and no criminal record.<ref name=mick2014/> -->		<!-- Do not add back without discussion --- According to ]'s Jason Mick, Karpelès was found guilty of a financial computer crime and of money transfer fraud when he was somewhere between 13 and 18 years old. The court gave him a 3 month ] and no criminal record.<ref name=mick2014/> -->

	==Career==		==Career==

	Karpelès began his professional journey as a PHP developer.<ref>{{Cite web \|last=Jean-Luc \|date=2014-02-27 \|title=Portrait de Mark Karpelès \|url=https://bitcoin.fr/portrait-de-mark-karpeles/ \|access-date=2024-09-08 \|website=bitcoin.fr \|language=fr-FR}}</ref> In 2009, Karpelès founded Tibanne Co. Ltd., a Japan-based bitcoin related technology provider, where he served as CEO.<ref>{{Cite web\|url=https://www.cnbc.com/2014/03/12/us-judge-freezes-assets-of-mtgox-bitcoin-exchange-boss.html\|title=US judge freezes assets of Mt.Gox bitcoin exchange boss\|date=12 March 2014\|website=CNBC}}</ref><ref>{{cite news\|url=http://www.businessweek.com/articles/2013-05-31/a-bitcoin-exchange-goes-for-respectability\|archive-url=https://web.archive.org/web/20130607113530/http://www.businessweek.com/articles/2013-05-31/a-bitcoin-exchange-goes-for-respectability\|url-status=dead\|archive-date=7 June 2013\|title=A Bitcoin Exchange Goes for Respectability\|author=David Meyer\|work=Businessweek.com\|date=31 May 2013 \|access-date=24 February 2015}}</ref> He was a founding member of the ], created in 2012 with a mission to standardize and promote bitcoin, and served on its board until February 2014.<ref>{{cite news \| url=https://www.reuters.com/article/mtgox-bitcoinfoundation-idUSL3N0LT15X20140224 \| work=Reuters \| date=23 February 2014 \| title=Mt. Gox resigns from Bitcoin Foundation \| access-date=25 February 2014 }}</ref><ref>{{cite web\|url=http://www.pcworld.com/article/2100720/mt-gox-quits-bitcoin-foundation-board.html\|title=Mt. Gox quits Bitcoin Foundation board\|date=24 February 2014\|work=PCWorld\|access-date=24 February 2015}}</ref>		Karpelès began his professional journey as a PHP developer.<ref>{{Cite web \|last=Jean-Luc \|date=2014-02-27 \|title=Portrait de Mark Karpelès \|url=https://bitcoin.fr/portrait-de-mark-karpeles/ \|access-date=2024-09-08 \|website=bitcoin.fr \|language=fr-FR}}</ref> In 2009, Karpelès founded ] Co. Ltd., a Japan-based bitcoin related technology provider, where he served as CEO.<ref>{{Cite web\|url=https://www.cnbc.com/2014/03/12/us-judge-freezes-assets-of-mtgox-bitcoin-exchange-boss.html\|title=US judge freezes assets of Mt.Gox bitcoin exchange boss\|date=12 March 2014\|website=CNBC}}</ref><ref>{{cite news\|url=http://www.businessweek.com/articles/2013-05-31/a-bitcoin-exchange-goes-for-respectability\|archive-url=https://web.archive.org/web/20130607113530/http://www.businessweek.com/articles/2013-05-31/a-bitcoin-exchange-goes-for-respectability\|url-status=dead\|archive-date=7 June 2013\|title=A Bitcoin Exchange Goes for Respectability\|author=David Meyer\|work=Businessweek.com\|date=31 May 2013 \|access-date=24 February 2015}}</ref> He was a founding member of the ], created in 2012 with a mission to standardize and promote bitcoin, and served on its board until February 2014.<ref>{{cite news \| url=https://www.reuters.com/article/mtgox-bitcoinfoundation-idUSL3N0LT15X20140224 \| work=Reuters \| date=23 February 2014 \| title=Mt. Gox resigns from Bitcoin Foundation \| access-date=25 February 2014 }}</ref><ref>{{cite web\|url=http://www.pcworld.com/article/2100720/mt-gox-quits-bitcoin-foundation-board.html\|title=Mt. Gox quits Bitcoin Foundation board\|date=24 February 2014\|work=PCWorld\|access-date=24 February 2015}}</ref> During this time, Karpelès, through Mt. Gox, donated approximately 10,000 Bitcoin to the ] as part of its Platinum Industry Membership.<ref>{{Cite web \|last=Research \|first=BitMEX \|date=2019-09-03 \|title=The Bitcoin Foundation \|url=https://blog.bitmex.com/the-bitcoin-foundation/ \|access-date=2024-09-08 \|website=BitMEX Blog \|language=en-US}}</ref>

			Karpelès corresponded with ] regarding the possibility of developing a separate Bitcoin client in early 2010, intending to incorporate more flexibility and features into the software. ] advised against it, citing concerns that multiple clients operating on the same blockchain could cause issues with ].<ref>{{Cite AV media \|url=https://www.youtube.com/watch?v=Nzc8HyBGDZ0 \|title=Mark Karpeles, CEO of UNGOX, Inc. \|date=2022-04-10 \|last=日本外国特派員協会オフィシャルサイトFCCJchannel \|access-date=2024-09-08 \|via=YouTube}}</ref>
⚫	~~===~~Mt. Gox~~===~~

		⚫	'''Mt.Gox'''
⚫	In 2011, Karpelès acquired the ] bitcoin exchange site from programmer ], with its original owner receiving 12% shares of the new company.<ref>{{cite web\|url=https://dealbook.nytimes.com/2014/02/28/mt-gox-files-for-bankruptcy/\|title=Erosion of Faith Was Death Knell for Mt. Gox

		⚫	In 2011, Karpelès acquired the ] bitcoin exchange site from programmer ], which was later incorporated in Tokyo, with its original owner receiving 12% shares of the new company.<ref>{{cite web\|url=https://dealbook.nytimes.com/2014/02/28/mt-gox-files-for-bankruptcy/\|title=Erosion of Faith Was Death Knell for Mt. Gox
	\|author= Rachel Abrams Matthew Goldstein and ] \|work=The New York Times\|date=28 February 2014		\|author= Rachel Abrams Matthew Goldstein and ] \|work=The New York Times\|date=28 February 2014
	\|access-date=24 February 2015}}</ref><ref>{{cite web\| date=1 April 2013\|last=Jeffries\|first=Adrianne\|title=Barons of Bitcoin\|url=https://www.theverge.com/2013/4/1/4154500/mt-gox-barons-of-bitcoin\|work=The Verge\|access-date=13 March 2014}}</ref><ref>{{cite web \|url=https://online.wsj.com/article/BT-CO-20140310-712183.html \|title=Bitcoin Exchange Mt. Gox Files for Bankruptcy in U.S. -- 2nd Update - WSJ.com \|website=online.wsj.com \|url-status=dead \|archive-url=https://web.archive.org/web/20140311030453/http://online.wsj.com/article/BT-CO-20140310-712183.html \|archive-date=2014-03-11}}</ref> ~~Under~~ ~~his~~ ~~management,~~ ~~the~~ ~~platform handled~~ the ~~majority~~ ~~of global~~ Bitcoin ~~transactions~~ by ~~2014~~.<ref>{{Cite news \|title=Mt Gox: The brief reign of bitcoin's top exchange \|url=https://www.reuters.com/article/business/mt-gox-the-brief-reign-of-bitcoins-top-exchange-idUSBREA1R06C/}}</ref> <ref>{{Cite news \|title=Apparent Theft at Mt. Gox Shakes Bitcoin World \|url=https://www.nytimes.com/2014/02/25/business/apparent-theft-at-mt-gox-shakes-bitcoin-world.html}}</ref> Despite its success, Mt. Gox faced growing operational and security challenges, compounded by the rapid expansion of its user base.<ref>{{Cite news \|last=McMillan \|first=Robert \|title=The Inside Story of Mt. Gox, Bitcoin's $460 Million Disaster \|url=https://www.wired.com/2014/03/bitcoin-exchange/ \|access-date=2024-09-08 \|work=Wired \|language=en-US \|issn=1059-1028}}</ref> Karpelès implemented various security upgrades and sought to stabilize the platform.<ref>{{Cite web \|title=Mark Karpelès – Portrait du baron déchu du Bitcoin \|url=https://coinacademy.fr/mark-karpeles/ \|access-date=2024-09-08 \|website=Coin Academy \|language=fr}}</ref> However, Mt. Gox experienced a major theft in 2014, which resulted in the loss of a significant amount of Bitcoin.<ref>{{Cite news \|last=Hern \|first=Alex \|date=2014-02-28 \|title=MtGox files for bankruptcy in Japan after collapse of bitcoin exchange \|url=https://www.theguardian.com/technology/2014/feb/28/bitcoin-mtgox-bankruptcy-japan \|access-date=2024-09-08 \|work=The Guardian \|language=en-GB \|issn=0261-3077}}</ref> Mt. Gox filed subsequently for bankruptcy in Japan on 28 February 2014, and for ] bankruptcy in Texas in March 2014.<ref name="US Bankruptcy Court case 14-31229-sgj15">{{cite web\|title=Declaration of Robert Marie Mark Karpeles \|url=https://www.scribd.com/doc/211626536/Karpeles-Declaration\|publisher=US Bankruptcy Court for the Northern District of Texas Dallas Division\|access-date=13 March 2014\|page=1\|format=PDF}} The document, signed by "Robert Marie Mark Karpeles", was published by '']'' on the ] website, and according to ''Ars Technica'' is a court document filed in US Bankruptcy Court.</ref><ref>{{cite magazine\|url=https://www.wired.com/wiredenterprise/2014/03/gox-texas/\|title=Bitcoin Exchange Mt. Gox Files for U.S. Bankruptcy as Death Spiral Continues\|magazine=WIRED\|access-date=24 February 2015}}</ref><ref>{{Cite news \|last=McMillan \|first=Robert \|title=The Inside Story of Mt. Gox, Bitcoin's $460 Million Disaster \|url=https://www.wired.com/2014/03/bitcoin-exchange/ \|access-date=2024-07-11 \|work=Wired \|language=en-US \|issn=1059-1028}}</ref> ~~Karpelès was arrested in 2014 for actions related to his role at Mt. Gox and eventually convicted of data manipulation and falsification.~~		\|access-date=24 February 2015}}</ref><ref>{{cite web\| date=1 April 2013\|last=Jeffries\|first=Adrianne\|title=Barons of Bitcoin\|url=https://www.theverge.com/2013/4/1/4154500/mt-gox-barons-of-bitcoin\|work=The Verge\|access-date=13 March 2014}}</ref><ref>{{cite web \|url=https://online.wsj.com/article/BT-CO-20140310-712183.html \|title=Bitcoin Exchange Mt. Gox Files for Bankruptcy in U.S. -- 2nd Update - WSJ.com \|website=online.wsj.com \|url-status=dead \|archive-url=https://web.archive.org/web/20140311030453/http://online.wsj.com/article/BT-CO-20140310-712183.html \|archive-date=2014-03-11}} </ref> Karpelès transformed Mt. Gox into the largest ] in the world.<ref>{{Cite news \|title=Mt Gox: The brief reign of bitcoin's top exchange \|url=https://www.reuters.com/article/business/mt-gox-the-brief-reign-of-bitcoins-top-exchange-idUSBREA1R06C/}}</ref> Under his management, the platform handled the majority of global Bitcoin transactions by 2014, becoming a crucial player in the ] Industry.<ref>{{Cite news \|title=Apparent Theft at Mt. Gox Shakes Bitcoin World \|url=https://www.nytimes.com/2014/02/25/business/apparent-theft-at-mt-gox-shakes-bitcoin-world.html}}</ref> Despite its success, Mt. Gox faced growing operational and security challenges, compounded by the rapid expansion of its user base.<ref>{{Cite news \|last=McMillan \|first=Robert \|title=The Inside Story of Mt. Gox, Bitcoin's $460 Million Disaster \|url=https://www.wired.com/2014/03/bitcoin-exchange/ \|access-date=2024-09-08 \|work=Wired \|language=en-US \|issn=1059-1028}}</ref> Karpelès implemented various security upgrades and sought to stabilize the platform.<ref>{{Cite web \|title=Mark Karpelès – Portrait du baron déchu du Bitcoin \|url=https://coinacademy.fr/mark-karpeles/ \|access-date=2024-09-08 \|website=Coin Academy \|language=fr}}</ref> However, Mt. Gox experienced a major theft in 2014, which resulted in the loss of a significant amount of Bitcoin.<ref>{{Cite news \|last=Hern \|first=Alex \|date=2014-02-28 \|title=MtGox files for bankruptcy in Japan after collapse of bitcoin exchange \|url=https://www.theguardian.com/technology/2014/feb/28/bitcoin-mtgox-bankruptcy-japan \|access-date=2024-09-08 \|work=The Guardian \|language=en-GB \|issn=0261-3077}}</ref> Mt. Gox filed subsequently for bankruptcy in Japan on 28 February 2014, and for ] bankruptcy in Texas in March 2014.<ref name="US Bankruptcy Court case 14-31229-sgj15">{{cite web\|title=Declaration of Robert Marie Mark Karpeles \|url=https://www.scribd.com/doc/211626536/Karpeles-Declaration\|publisher=US Bankruptcy Court for the Northern District of Texas Dallas Division\|access-date=13 March 2014\|page=1\|format=PDF}} The document, signed by "Robert Marie Mark Karpeles", was published by '']'' on the ] website, and according to ''Ars Technica'' is a court document filed in US Bankruptcy Court.</ref><ref>{{cite magazine\|url=https://www.wired.com/wiredenterprise/2014/03/gox-texas/\|title=Bitcoin Exchange Mt. Gox Files for U.S. Bankruptcy as Death Spiral Continues\|magazine=WIRED\|access-date=24 February 2015}}</ref><ref>{{Cite news \|last=McMillan \|first=Robert \|title=The Inside Story of Mt. Gox, Bitcoin's $460 Million Disaster \|url=https://www.wired.com/2014/03/bitcoin-exchange/ \|access-date=2024-07-11 \|work=Wired \|language=en-US \|issn=1059-1028}}</ref>

			'''Private Internet Access (PIA)'''

			Following the collapse of Mt. Gox, Karpelès became the Chief Technology Officer (CTO) of ],<ref>{{Cite web \|last=rasengan \|date=2018-04-24 \|title=Why I hired Mt. Gox ex-CEO Mark Karpeles as CTO of London Trust Media \|url=https://www.privateinternetaccess.com/blog/why-i-hired-mt-gox-ex-ceo-mark-karpeles-as-cto-of-london-trust-media/ \|access-date=2024-09-12 \|website=PIA VPN Blog \|language=en-US}}</ref> the company behind Freenode and ], in April 2018.<ref>{{Cite web \|title=Former Mt. Gox bitcoin exchange CEO Karpeles lands new job \|url=https://www.cnet.com/culture/mt-gox-bitcoin-exchange-former-ceo-karpeles-lands-new-job/ \|access-date=2024-09-12 \|website=CNET \|language=en}}</ref> In November 2019, Private Internet Access was acquired by ] for $127.6 million.<ref>{{Cite web \|title=Private Internet Access to Be Acquired by Kape * TorrentFreak \|url=https://torrentfreak.com/private-internet-access-to-be-acquired-by-kape/ \|access-date=2024-07-11 \|language=en}}</ref>

			'''Ungox'''

			In 2022, Karpelès announced ], a project aimed at evaluating the risks of cryptocurrency products and exchanges.<ref>{{Cite web \|last=Rubin \|first=Sam Reynolds, Damanick Dantes and James \|date=2022-04-11 \|title=First Mover Asia: Mark Karpeles’ UnGox Wants to Help Investors Assess the Risks of Crypto Products; Bitcoin Drops Below $40K \|url=https://www.coindesk.com/markets/2022/04/11/first-mover-asia-mark-karpeles-ungox-wants-to-help-investors-assess-the-risks-of-crypto-products-bitcoin-drops-below-40k/ \|access-date=2024-09-07 \|website=www.coindesk.com \|language=en}}</ref> He later shared plans to transition ] into a ], with the goal of providing transparent, non-commercial risk assessments to help prevent future events similar to the Mt. Gox collapse.<ref>{{Cite news \|title=Former Mt. Gox CEO’s new crypto exchange set to launch this month with 'transparency' focus \|url=https://www.theblock.co/post/314566/former-mt-gox-ceo-new-exchange-launching-this-month}}</ref>

			'''Joseon'''

			In 2023, Karpelès was appointed as the Minister of Technology for Joseon, a virtual nation-state. In this role, Karpelès is involved in overseeing technological developments and innovations within the jurisdiction of Joseon, which emphasizes cyber sovereignty and the use of ].<ref>{{Cite web \|last=Tomlin \|first=Bennett \|date=2023-12-19 \|title=Duke Roger Ver becomes finance minister for Joseon \|url=https://protos.com/duke-roger-ver-becomes-finance-minister-for-joseon/ \|access-date=2024-07-11 \|website=Protos \|language=en-US}}</ref>

			'''EllipX'''

			In 2024, Karpelès announced his return to the ] industry with the launch of ], a new ].<ref>{{Cite web \|last=Reynolds \|first=Sam \|date=2024-09-04 \|title=Mt. Gox Wouldn't Have Happened With Modern Tools, Mark Karpeles Says \|url=https://www.coindesk.com/business/2024/09/04/mt-gox-wouldnt-have-happened-with-modern-tools-mark-karpeles/ \|access-date=2024-09-08 \|website=www.coindesk.com \|language=en}}</ref> Set to launch by end of September in ], ] is built on principles of transparency, security, and compliance with ] regulations, specifically the Markets in Crypto-Assets (MiCA) framework.<ref>{{Cite news \|title=Former Mt. Gox CEO to launch EllipX crypto exchange in Europe \|url=https://cointelegraph.com/news/former-mt-gox-ceo-ellipx-crypto-exchange-europe}}</ref><ref>{{Cite web \|last=Bitcoin.com \|date=2024-09-05 \|title=Former Mt Gox CEO Mark Karpeles to Launch New Crypto Exchange With a Focus on Transparency – News Bytes Bitcoin News \|url=https://news.bitcoin.com/former-mt-gox-ceo-mark-karpeles-to-launch-new-crypto-exchange-with-a-focus-on-transparency/ \|access-date=2024-09-08 \|website=Bitcoin News}}</ref> Karpelès stated that this new venture reflects his commitment to rebuilding trust in the crypto space after the collapse of Mt. Gox in 2014.<ref>{{Cite web \|date=2024-09-04 \|title=Former Mt. Gox CEO Mark Karpeles to Launch New Crypto Exchange This Month \|url=https://www.blockhead.co/2024/09/04/former-mt-gox-ceo-mark-karpeles-to-launch-new-crypto-exchange-this-month-2/ \|access-date=2024-09-08 \|website=Blockhead \|language=en}}</ref>

			] differentiates itself by employing a segmented operational structure, inspired by traditional financial exchanges like the ].<ref>{{Cite news \|title=Former Mt. Gox CEO’s new crypto exchange set to launch this month with 'transparency' focus \|url=https://www.theblock.co/post/314566/former-mt-gox-ceo-new-exchange-launching-this-month}}</ref> The platform separates its ], ], and asset storage functions to ensure transparency and minimize conflicts of interest.<ref>{{Cite web \|last=Media \|first=Moby \|date=2024-09-04 \|title=Former Mt. Gox CEO Mark Karpeles to Launch New Crypto Exchange with Focus on Transparency \|url=https://www.thestreet.com/crypto/innovation/former-mt-gox-ceo-mark-karpeles-to-launch-new-crypto-exchange-with-focus-on-transparency \|access-date=2024-09-08 \|website=TheStreet Crypto: Bitcoin and cryptocurrency news, advice, analysis and more \|language=en}}</ref> Furthermore, Karpelès has implemented advanced security measures, such as ] and hardware security modules (HSM), to protect user assets.<ref>{{Cite web \|title=EllipX - About \|url=https://www.ellipx.com/about \|access-date=2024-09-08 \|website=EllipX \|language=en}}</ref><ref>{{Cite web \|date=2024-09-05 \|title=Mark Karpelès Launches New EllipX Crypto Exchange in Europe \|url=https://www.bitcoinsensus.com/news/blockchain/mark-karpeles-launches-new-ellipx-crypto-exchange-in-europe/ \|access-date=2024-09-08 \|language=en-US}}</ref>

			Karpelès serves as the ] of ], overseeing the technical aspects of the ] and ensuring it adheres to the highest standards of security and performance.<ref>{{Cite web \|date=2024-09-04 \|title=Ex-Mt. Gox CEO to right wrongs with new exchange EllipX \|url=https://crypto.news/ex-mt-gox-ceo-to-right-wrongs-with-new-exchange-ellipx/ \|access-date=2024-09-08 \|website=crypto.news \|language=en-US}}</ref>

		⚫	== Mt. Gox judicial proceedings ==
		⚫	In April 2014, Karpeles was subpoenaed by the ]'s ] (FinCEN) to appear in ]., for testimony on 18 April 2014. Mt. Gox lawyers filed a court response stating that Karpelès did not have legal representation for this matter and therefore declined to appear on the initial date.<ref>{{cite news \|date=15 April 2014 \|title=Mt. Gox founder won't appear in U.S. for questions about bankruptcy case \|url=https://www.reuters.com/article/us-bitcoin-mtgox-idUSBREA3E02S20140415 \|access-date=24 February 2015 \|work=Reuters}}</ref><ref>{{cite web \|title=Mt. Gox founder won't attend US bankruptcy hearing \|url=http://www.cnet.com/news/mt-gox-founder-wont-attend-bitcoin-exchanges-bankruptcy-hearing/ \|access-date=24 February 2015 \|work=CNET \|publisher=CBS Interactive}}</ref> They requested a new date for his testimony, which was set for May 5th, 2014.<ref>{{cite web \|author=John Ribeiro \|date=15 April 2014 \|title=Mt. Gox seeks postponement of CEO's U.S. court deposition \|url=http://www.computerworld.com/s/article/9247673/Mt._Gox_seeks_postponement_of_CEO_s_U.S._court_deposition?taxonomyId=17 \|access-date=24 February 2015 \|work=Computerworld}}</ref><ref>{{cite news \|date=15 April 2014 \|title=BBC News - MtGox chief refuses to go to Bitcoin bankruptcy hearing \|url=https://www.bbc.com/news/technology-27032221 \|access-date=24 February 2015 \|work=BBC News}}</ref>

		⚫	On August 1, 2015, Karpelès was arrested by Japanese authorities on suspicion of accessing the Mt. Gox computer system to manipulate account balances.<ref>{{cite news \|date=1 August 2015 \|title=MtGox bitcoin chief Mark Karpeles arrested in Japan \|url=https://www.bbc.com/news/world-asia-33745611 \|access-date=1 August 2015 \|work=BBC News}}</ref><ref>{{cite news \|author=Jonathan Soble \|date=1 August 2015 \|title=Mark Karpeles, Chief of Bankrupt Bitcoin Exchange, Is Arrested in Tokyo \|url=https://www.nytimes.com/2015/08/02/business/dealbook/mark-karpeles-mt-gox-bitcoin-arrested.html \|access-date=1 August 2015 \|newspaper=]}}</ref><ref>{{cite news \|date=1 August 2015 \|title=Mt. Gox bitcoin firm head arrested \|url=http://the-japan-news.com/news/article/0002326865 \|access-date=1 August 2015 \|newspaper=] by The ]}}</ref> He was released on bail in July 2016, with the condition that he remain in Japan.<ref>{{Cite web \|date=2016-07-15 \|title=Karpeles released on bail in bitcoin embezzlement case \|url=https://www.japantimes.co.jp/news/2016/07/15/national/crime-legal/karpeles-released-bail-bitcoin-embezzlement-case/ \|access-date=2021-03-05 \|website=The Japan Times \|language=en-US}}</ref> On July 10, 2017, Karpelès pled not guilty to charges of embezzlement and data manipulation.<ref>{{Cite news \|date=11 July 2017 \|title=Chief of bitcoin exchange Mt. Gox denies embezzlement as trial opens \|url=https://www.reuters.com/article/us-japan-bitcoin-mt-gox/chief-of-bitcoin-exchange-mt-gox-pleads-not-guilty-to-embezzlement-nikkei-idUSKBN19W07Z \|access-date=2017-11-06 \|work=Reuters}}</ref>
⚫	==~~==Bankruptcy~~ proceedings====

			In 2017, ], the Russian operator of the Bitcoin exchange ], was arrested in Greece and indicted for ] over $4 billion, including funds stolen from the hack of Bitcoin exchange Mt. Gox.<ref>{{Cite news \|last=Gibbs \|first=Samuel \|date=2017-07-27 \|title='Criminal mastermind' of $4bn bitcoin laundering scheme arrested \|url=https://www.theguardian.com/technology/2017/jul/27/russian-criminal-mastermind-4bn-bitcoin-laundering-scheme-arrested-mt-gox-exchange-alexander-vinnik \|access-date=2024-07-11 \|work=The Guardian \|language=en-GB \|issn=0261-3077}}</ref> US authorities accused Vinnik of using BTC-e to launder money for individuals involved in crimes such as computer hacking and drug trafficking. They also linked him to the collapse of Mt. Gox in 2014, alleging that he laundered the stolen funds through BTC-e and Tradehill, another exchange he owned.<ref>{{Cite web \|last=Lyngaas \|first=Sean \|date=2023-05-24 \|title=Russian accused of money laundering lobbies to be included in potential US-Russia prisoner swap {{!}} CNN Politics \|url=https://www.cnn.com/2023/05/24/politics/alexander-vinnik-lobbies-potential-prisoner-swap/index.html \|access-date=2024-07-11 \|website=CNN \|language=en}}</ref> Vinnik's arrest was part of a series of US operations against Russian cybercriminals in Europe.<ref>{{Cite web \|last=De \|first=Nikhilesh \|date=2024-05-03 \|title=BTC-e Operator Alexander Vinnik Pleads Guilty to Money Laundering Conspiracy Charge \|url=https://www.coindesk.com/policy/2024/05/03/btc-e-operator-alexander-vinnik-pleads-guilty-to-money-laundering-conspiracy-charge/ \|access-date=2024-07-11 \|website=www.coindesk.com \|language=en}}</ref><ref>{{Cite web \|title=Russian crypto criminal pleads guilty to U.S. money laundering charges - UPI.com \|url=https://www.upi.com/Top_News/US/2024/05/04/Vinnick-guilty-plea-cryptocurrency-money-laundering/6901714838788/ \|access-date=2024-07-11 \|website=UPI \|language=en}}</ref> In May 2024, Vinnik pleaded guilty to conspiracy to commit money laundering.<ref>{{Cite web \|date=2024-05-03 \|title=Office of Public Affairs {{!}} BTC-e Operator Pleads Guilty to Money Laundering Conspiracy {{!}} United States Department of Justice \|url=https://www.justice.gov/opa/pr/btc-e-operator-pleads-guilty-money-laundering-conspiracy \|access-date=2024-07-16 \|website=www.justice.gov \|language=en}}</ref>
⚫	Mt. Gox's bankruptcy proceedings initially planned to repay creditors in Japanese yen at a price of approximately 483 US dollars per bitcoin, resulting in a total repayment of 45.6 billion Japanese yen (around 400 million US dollars).<ref>{{Cite news \|title=Twice burned - How Mt. Gox’s bitcoin customers could lose again \|url=https://www.reuters.com/investigates/special-report/bitcoin-gox/}}</ref> At the market price at the beginning of 2022 (around $35,000 per bitcoin), this would have left Karpelès with a significant amount of wealth.<ref>{{Cite news \|last1=ALEX \|last2=Harney \|first2=Ra \|last3=Stecklow \|first3=Steve \|title=Twice burned - How Mt. Gox's bitcoin customers could lose again \|url=http://www.reuters.com/investigates/special-report/bitcoin-gox/ \|access-date=2019-05-31 \|website=Reuters \|language=en}}</ref><ref>{{Cite news \|last=Narioka \|first=Kosaku \|date=2017-11-09 \|title=Former Bitcoin King Is Bankrupt—And He Could Get Rich Again \|url=https://www.wsj.com/articles/former-bitcoin-king-is-bankruptand-he-could-get-rich-again-1510223405 \|access-date=2019-05-31 \|work=Wall Street Journal \|language=en-US \|issn=0099-9660}}</ref><ref>{{Cite web \|last=Jeffries \|first=Adrianne \|date=2018-03-22 \|title=Inside the bizarre upside-down bankruptcy of Mt. Gox \|url=https://www.theverge.com/2018/3/22/17151430/bankruptcy-mt-gox-liabilities-bitcoin \|access-date=2019-05-31 \|website=The Verge}}</ref> However, Karpelès stated that he did not want the profits he was set to receive from the bankruptcy proceedings.<ref>{{cite news \|title=Former Mt. Gox CEO Doesn't Want His Billion Dollars \|url=https://www.wsj.com/articles/former-mt-gox-ceo-doesnt-want-his-billion-dollars-1522962084 \|work=Wall Street Journal \|date=5 April 2018}}</ref><ref>{{Cite news \|date=2018-07-12 \|title=The Fight Over Mt. Gox’s Bitcoin Stash \|url=https://www.bloomberg.com/news/articles/2018-07-12/mark-karpel-s-is-delighted-he-won-t-become-a-bitcoin-billionaire \|access-date=2024-07-11 \|work=Bloomberg.com \|language=en}}</ref> Under Japanese bankruptcy laws, around $1 billion of the money received would go to the company's shareholders, with the largest being Karpelès’ company Tibanne, which owned 88% of Mt. Gox.<ref>{{cite news \|last1=Harney \|first1=Alexandra \|last2=Stecklow \|first2=Steve \|title=Twice burned - How Mt. Gox's bitcoin customers could lose again \|url=https://www.reuters.com/investigates/special-report/bitcoin-gox/ \|work=Reuters \|date=16 November 2017}}</ref><ref>{{Cite web \|last=Rizzo \|first=Pete \|date=2018-04-04 \|title=Mt Gox CEO: I Don't Want Bankrupt Bitcoin Exchange's Billions \|url=https://www.coindesk.com/markets/2018/04/04/mt-gox-ceo-i-dont-want-bankrupt-bitcoin-exchanges-billions/ \|access-date=2024-07-11 \|website=www.coindesk.com \|language=en}}</ref><ref>{{Cite web \|date=2018-04-04 \|title=Mt Gox CEO: I Don't Want Bankrupt Bitcoin Exchange's Billions \|url=https://finance.yahoo.com/news/mt-gox-ceo-don-apos-130008432.html \|access-date=2024-07-11 \|website=Yahoo Finance \|language=en-US}}</ref>

			On 14 March 2019, the ] acquitted former Mt. Gox chief Karpelès of most charges in major bitcoin case.<ref>{{Cite journal \|date=2020 \|title=BITCOIN AND THE CROSS-MARKET EFFECTS OF THE MT. GOX MELTDOWN \|url=http://dx.doi.org/10.48009/3_iis_2020_245-252 \|journal=Issues In Information Systems \|doi=10.48009/3_iis_2020_245-252 \|issn=1529-7314\|doi-access=free }}</ref> The Tokyo District Court found Karpelès guilty on only one count of data manipulation related to Mt. Gox's account balances.<ref>{{Cite news \|date=2019-03-15 \|title=Former Mt. Gox CEO Mark Karpeles Gets Suspended Jail Term \|url=https://www.bloomberg.com/news/articles/2019-03-15/former-bitcoin-baron-mark-karpeles-gets-suspended-jail-term \|access-date=2024-07-11 \|work=Bloomberg.com \|language=en}}</ref> Tokyo prosecutors had indicted Karpelès on a series of charges, including embezzlement and aggravated breach of trust, and called for a 10-year prison sentence.<ref>{{Cite web \|last=Khatri \|first=Yogita \|date=2018-12-12 \|title=10-Year Jail Term Sought for Former Mt Gox CEO Mark Karpeles \|url=https://www.coindesk.com/markets/2018/12/12/10-year-jail-term-sought-for-former-mt-gox-ceo-mark-karpeles/ \|access-date=2024-07-11 \|website=www.coindesk.com \|language=en}}</ref><ref>{{Cite web \|date=2019-03-15 \|title=Mt Gox Bitcoin exchange's Karpeles avoids jail time in Japan \|url=https://apnews.com/general-news-4cb64156038a48c1abbedfa64982537c \|access-date=2024-07-11 \|website=AP News \|language=en}}</ref> But the Tokyo District Court found Karpelès not guilty of all other charges and handed down a suspended prison sentence for the falsification conviction.<ref>{{Cite news \|last=Dooley \|first=Ben \|date=2019-03-15 \|title=Bitcoin Tycoon Who Oversaw Mt. Gox Implosion Gets Suspended Sentence \|url=https://www.nytimes.com/2019/03/15/business/bitcoin-mt-gox-mark-karpeles-sentence.html \|access-date=2024-07-11 \|work=The New York Times \|language=en-US \|issn=0362-4331}}</ref><ref>{{Cite web \|date=2019-03-14 \|title=MtGox bitcoin founder learns fate on embezzlement charges \|url=https://www.france24.com/en/20190315-mtgox-bitcoin-founder-learns-fate-embezzlement-charges \|access-date=2024-07-11 \|website=France 24 \|language=en}}</ref> His acquittal on the more serious allegations of embezzlement and aggravated breach of trust was a surprise. The conviction rate in Japan after prosecutors file criminal charges is above 99%.<ref>{{Cite web \|last=Helms \|first=Kevin \|date=2019-03-15 \|title=Mt Gox CEO Mark Karpeles Found Not Guilty of Embezzlement – News Bitcoin News \|url=https://news.bitcoin.com/mtgox-ceo-mark-karpeles-not-guilty-embezzlement/ \|access-date=2024-07-11 \|website=Bitcoin News}}</ref><ref>{{Cite web \|title=Why is the Japanese Conviction Rate so High? \|url=https://hls.harvard.edu/bibliography/why-is-the-japanese-conviction-rate-so-high/ \|access-date=2024-07-11 \|website=Harvard Law School \|language=en-us}}</ref>
	In June 2018, the ] approved the petition, lead by Karpelès, to begin civil rehabilitation proceedings.<ref>{{Cite web \|last=Drake \|first=Ed \|date=2020-12-17 \|title=Mt. Gox trustee announces rehabilitation plan for creditors \|url=https://coingeek.com/mt-gox-trustee-announces-rehabilitation-plan-for-creditors/ \|access-date=2024-09-08 \|website=CoinGeek \|language=en-US}}</ref> This allowed for more flexible repayment terms, including compensation based on the current value of the lost coins.<ref>{{Cite news \|title=Mt. Gox creditors could receive billions as trustee announces approval of rehabilitation plan \|url=https://cryptonary.com/mt-gox-creditors-could-receive-billions-as-trustee-announces-approval-of-rehabilitation-plan/}}</ref> Creditors were able to start filing new claims under these proceedings in 2018, but a 2021 federal lawsuit in the U.S. by Mt. Gox customers was unable to proceed as a class-action lawsuit, which placed hopes of compensation in jeopardy.<ref>{{Cite web \|last=Gray \|first=Duane Morris LLP-C. Neil \|date=2021-06-29 \|title=U.S. Federal Lawsuit by Mt. Gox Customers Cannot Proceed as a Class Action \|url=https://www.lexology.com/library/detail.aspx?g=fc84ae15-0e18-4b53-afc2-927af6976166 \|access-date=2022-01-24 \|website=Lexology \|language=en}}</ref>

			In June 2023, the ] charged two Russian nationals, Alexey Bilyuchenko and Aleksandr Verner, with conspiring to launder approximately 647,000 bitcoins stolen in the 2014 hack of Mt. Gox.<ref>{{cite news \|last1=Satter \|first1=Raphael \|title=US charges two Russians in hack of Mt. Gox crypto exchange \|url=https://www.reuters.com/world/us/us-charges-two-russians-hack-mt-gox-crypto-exchange-justice-dept-2023-06-09/ \|work=Reuters \|date=9 June 2023}}</ref> The stolen bitcoins were valued at roughly half a billion dollars then.<ref>{{Cite web \|last=Flashpoint \|date=2023-06-12 \|title=COURT DOC: Russian Nationals Charged With Hacking One Cryptocurrency Exchange And Illicitly Operating Another \|url=https://flashpoint.io/blog/usa-vs-alexey-bilyuchenko-aleksandr-verner/ \|access-date=2024-07-11 \|website=Flashpoint}}</ref><ref>{{Cite web \|last=De \|first=Nikhilesh \|date=2023-06-09 \|title=Mt. Gox's Hackers Are 2 Russian Nationals, U.S. DOJ Alleges in Indictment \|url=https://www.coindesk.com/policy/2023/06/09/mt-goxs-hackers-are-2-russian-nationals-us-doj-alleges-in-indictment/ \|access-date=2024-07-11 \|website=www.coindesk.com \|language=en}}</ref>
⚫	In July 2024, Mt. Gox began repaying its creditors in Bitcoin and ] under the legal rehabilitation plan.<ref>{{Cite web \|last=Sen \|first=Vivek \|date=2024-07-05 \|title=Bitcoin Price Falls as Mt Gox Starts Repayments \|url=https://bitcoinmagazine.com/business/bitcoin-price-falls-as-mt-gox-starts-repayments \|access-date=2024-07-11 \|website=Bitcoin Magazine - Bitcoin News, Articles and Expert Insights \|language=en}}</ref> Attorney Nobuaki Kobayashi oversees the process, ensuring that all creditor verifications and agreements are in place before disbursements.<ref>{{Cite news \|title=Breaking: Mt. Gox trustee changes repayment deadline to October 2024 \|url=https://cointelegraph.com/news/mt-gox-trustee-changes-repayment-deadline-october-2024}}</ref><ref>{{Cite web \|last=Sigalos \|first=Ryan \|last2=Browne \|first2=MacKenzie \|date=2024-07-05 \|title=Mt. Gox begins repaying bitcoin to creditors a decade after exchange's collapse. What it means \|url=https://www.cnbc.com/2024/07/05/mt-gox-begins-repaying-bitcoin-to-creditors-a-decade-on-from-collapse.html \|access-date=2024-07-11 \|website=CNBC \|language=en}}</ref><ref>{{Cite web \|last=Reynolds \|first=Parikshit \|last2=Mishra \|first2=Sam \|date=2024-07-05 \|title=Mt. Gox Begins Repayments in Bitcoin and Bitcoin Cash \|url=https://www.coindesk.com/business/2024/07/05/mt-gox-begins-repayments-in-bitcoin-and-bitcoin-cash/ \|access-date=2024-07-11 \|website=www.coindesk.com \|language=en}}</ref> Of the 850,000 lost bitcoins, 200,000 bitcoins were recovered, of which 60,000 were later sold by the trustee to secure funds.<ref>{{Cite web \|title=Mt. Gox creditors have until November to file claims \|url=https://www.zdnet.com/article/mt-gox-creditors-have-until-november-to-file-claims/ \|access-date=2024-07-11 \|website=ZDNET \|language=en}}</ref> Given the dramatic increase in Bitcoin's value, the repayment process is substantial.<ref>{{Cite web \|last=Rowe \|first=Niamh \|title=Bitcoin slumps 12% over past week as Mt. Gox repayments flood market \|url=https://fortune.com/crypto/2024/07/08/bitcoin-slumps-mt-gox-governments-liquidating-crypto/ \|access-date=2024-09-08 \|website=Fortune Crypto \|language=en}}</ref> In early July 2024, Mt. Gox moved 47,228 BTC,<ref>{{Cite web \|last=Godbole \|first=Omkar \|date=2024-07-05 \|title=Bitcoin Slumps Below $54K as Mt. Gox Moves $2.6B in BTC \|url=https://www.coindesk.com/markets/2024/07/05/bitcoin-dips-below-54k-as-mt-gox-moves-26b-in-btc/ \|access-date=2024-07-11 \|website=www.coindesk.com \|language=en}}</ref> valued at approximately $2.7 billion,<ref>{{Cite web \|last=Helms \|first=Kevin \|date=2024-07-05 \|title=Mt Gox Initiates Bitcoin Repayments to Creditors – Featured Bitcoin News \|url=https://news.bitcoin.com/mt-gox-initiates-bitcoin-repayments-to-creditors/ \|access-date=2024-07-11 \|website=Bitcoin News}}</ref> out of its offline wallets as part of the repayment process~~. Entities like MtGoxBalanceBot have been transparently tracking these movements, providing updates to the community~~.<ref>{{Cite web \|last=Ray \|first=Siladitya \|title=Bitcoin Slumps To $55,000 As Defunct Exchange Mt. Gox Starts Paying Back Creditors \|url=https://www.forbes.com/sites/siladityaray/2024/07/05/bitcoin-slumps-to-54000-as-defunct-exchange-mt-gox-starts-paying-back-creditors/ \|access-date=2024-07-11 \|website=Forbes \|language=en}}</ref><ref>{{Cite web \|last=Bambysheva \|first=Nina \|title=MtGox $9 Billion Payout Is Creditors’ Gain But Bitcoin’s Pain \|url=https://www.forbes.com/sites/digital-assets/2024/06/24/mtgox-9-billion-payout-is-creditors-gain-but-bitcoins-pain/ \|access-date=2024-07-11 \|website=Forbes \|language=en}}</ref> As of late July 2024, approximately 40% of the Bitcoin owed to Mt. Gox creditors had been distributed, leaving about 60% still to be returned.<ref>{{Cite news \|date=2024-07-23 \|title=Bitcoin (BTC) Price Slips as Mt. Gox Repayments Pick Up Steam \|url=https://u.today/bitcoin-btc-price-slips-as-mt-gox-repayments-pick-up-steam \|access-date=2024-07-24 \|work=U.Today \|language=en}}</ref> This ongoing process involves significant movements in the cryptocurrency market, with the total amount owed to creditors estimated to be around $10 billion.<ref>{{Cite web \|last=Jamal \|first=Nynu V. \|date=2024-07-24 \|title=Kraken Begins Distributing Bitcoin to Mt. Gox Creditors \|url=https://coinedition.com/kraken-begins-distributing-bitcoin-to-mt-gox-creditors/ \|access-date=2024-07-24 \|website=Coin Edition \|language=en-US}}</ref>

		⚫	During the 2015 trial of ] for operating the ], his defense argued that Karpelès, rather than ], was the individual behind the pseudonym "]".<ref>{{Cite web \|last=Paul \|first=Kari \|date=2015-01-15 \|title=Defense in Silk Road Trial Says Mt. Gox CEO Was the Real Dread Pirate Roberts \|url=https://www.vice.com/en_us/article/xyw53j/defense-in-silk-road-trial-says-mt-gox-ceo-was-the-real-dread-pirate-roberts \|access-date=2019-05-31 \|website=Vice \|language=en-US}}</ref> ] Investigations agent Jared Der-Yeghiayan had also suspected Karpelès during the 2012–2013 investigation, though no evidence supported this theory.<ref>{{Cite web \|last=Jeong \|first=Sarah \|title=Was Mt. Gox CEO The Dread Pirate Roberts? The DHS Once Believed It \|url=https://www.forbes.com/sites/sarahjeong/2015/01/16/dhs-agent-thought-mt-gox-ceo-was-dpr/ \|access-date=2024-09-10 \|website=Forbes \|language=en}}</ref> Karpelès denied any involvement on Twitter,<ref>{{Cite web \|last=Koebler \|first=Jason \|date=2015-01-16 \|title=Mt. Gox CEO Denies Silk Road Involvement: 'I Am Not Dread Pirate Roberts' \|url=https://www.vice.com/en_us/article/8qxdjv/mt-gox-ceo-i-have-nothing-to-do-with-silk-road-ross-ulbricht-dread-pirate-roberts \|access-date=2019-05-31 \|website=Vice \|language=en-US}}</ref><ref>{{cite web \|date=15 January 2015 \|title=Mark Karpeles on Twitter: "This is probably going to be disappointing for you, but I am not and have never been Dread Pirate Roberts." \|url=https://twitter.com/MagicalTux/status/555892860654862337 \|access-date=28 January 2015}}</ref> and ] was ultimately convicted.<ref name="ars-conviction">{{cite web \|last=Mullin \|first=Joe \|date=4 February 2015 \|title=Ulbricht guilty in Silk Road online drug-trafficking trial \|url=https://arstechnica.com/tech-policy/2015/02/ulbricht-guilty-in-silk-road-online-drug-trafficking-trial/ \|access-date=4 February 2015 \|work=Ars Technica}}</ref>
⚫	The total sum owed to creditors accounts for roughly 0.7% of the total Bitcoin in circulation.<ref>{{Cite web \|last=Browne \|first=MacKenzie \|last2=Sigalos \|first2=Ryan \|date=2024-07-01 \|title=Collapsed bitcoin exchange Mt. Gox is about to unload $9 billion of coins onto the market. Here's what it means \|url=https://www.cnbc.com/2024/07/01/mt-gox-about-to-unload-9-billion-of-bitcoin-what-it-means-for-btc.html \|access-date=2024-07-11 \|website=CNBC \|language=en}}</ref> The 850,000 lost bitcoins were worth approximately $450 million at the time of the hack, and the 140,000 bitcoins recovered are worth around $10 billion at a price of $65,000 per bitcoin by end of July 2024. This means that creditors are receiving about 16 times more value in today's market.<ref>{{Cite web \|last=Sigalos \|first=Ryan \|last2=Browne \|first2=MacKenzie \|date=2024-06-29 \|title=Bitcoin windfall coming for Mt. Gox creditors after decade-long wait and 10,000% price spike \|url=https://www.cnbc.com/2024/06/29/bitcoin-windfall-comes-for-mt-gox-creditors-after-10000percent-price-spike.html \|access-date=2024-07-11 \|website=CNBC \|language=en}}</ref>

			==Mt. Gox bankruptcy proceedings==
	===Subsequent ventures===

		⚫	Mt. Gox's bankruptcy proceedings initially planned to repay ] in Japanese yen at a price of approximately 483 US dollars per bitcoin, resulting in a total repayment of 45.6 billion Japanese yen (around 400 million US dollars).<ref>{{Cite news \|title=Twice burned - How Mt. Gox’s bitcoin customers could lose again \|url=https://www.reuters.com/investigates/special-report/bitcoin-gox/}}</ref> At the market price at the beginning of 2022 (around $35,000 per bitcoin), this would have left Karpelès with a significant amount of wealth.<ref>{{Cite news \|last1=ALEX \|last2=Harney \|first2=Ra \|last3=Stecklow \|first3=Steve \|title=Twice burned - How Mt. Gox's bitcoin customers could lose again \|url=http://www.reuters.com/investigates/special-report/bitcoin-gox/ \|access-date=2019-05-31 \|website=Reuters \|language=en}}</ref><ref>{{Cite news \|last=Narioka \|first=Kosaku \|date=2017-11-09 \|title=Former Bitcoin King Is Bankrupt—And He Could Get Rich Again \|url=https://www.wsj.com/articles/former-bitcoin-king-is-bankruptand-he-could-get-rich-again-1510223405 \|access-date=2019-05-31 \|work=Wall Street Journal \|language=en-US \|issn=0099-9660}}</ref><ref>{{Cite web \|last=Jeffries \|first=Adrianne \|date=2018-03-22 \|title=Inside the bizarre upside-down bankruptcy of Mt. Gox \|url=https://www.theverge.com/2018/3/22/17151430/bankruptcy-mt-gox-liabilities-bitcoin \|access-date=2019-05-31 \|website=The Verge}}</ref> However, Karpelès stated that he did not want the profits he was set to receive from the bankruptcy proceedings.<ref>{{cite news \|title=Former Mt. Gox CEO Doesn't Want His Billion Dollars \|url=https://www.wsj.com/articles/former-mt-gox-ceo-doesnt-want-his-billion-dollars-1522962084 \|work=Wall Street Journal \|date=5 April 2018}}</ref><ref>{{Cite news \|date=2018-07-12 \|title=The Fight Over Mt. Gox’s Bitcoin Stash \|url=https://www.bloomberg.com/news/articles/2018-07-12/mark-karpel-s-is-delighted-he-won-t-become-a-bitcoin-billionaire \|access-date=2024-07-11 \|work=Bloomberg.com \|language=en}}</ref> Under Japanese bankruptcy laws, around $1 billion of the money received would go to the company's shareholders, with the largest being Karpelès’ company Tibanne, which owned 88% of Mt. Gox.<ref>{{cite news \|last1=Harney \|first1=Alexandra \|last2=Stecklow \|first2=Steve \|title=Twice burned - How Mt. Gox's bitcoin customers could lose again \|url=https://www.reuters.com/investigates/special-report/bitcoin-gox/ \|work=Reuters \|date=16 November 2017}}</ref><ref>{{Cite web \|last=Rizzo \|first=Pete \|date=2018-04-04 \|title=Mt Gox CEO: I Don't Want Bankrupt Bitcoin Exchange's Billions \|url=https://www.coindesk.com/markets/2018/04/04/mt-gox-ceo-i-dont-want-bankrupt-bitcoin-exchanges-billions/ \|access-date=2024-07-11 \|website=www.coindesk.com \|language=en}}</ref><ref>{{Cite web \|date=2018-04-04 \|title=Mt Gox CEO: I Don't Want Bankrupt Bitcoin Exchange's Billions \|url=https://finance.yahoo.com/news/mt-gox-ceo-don-apos-130008432.html \|access-date=2024-07-11 \|website=Yahoo Finance \|language=en-US}}</ref>
	After the collapse of Mt. Gox, Karpelès joined London Trust Media, the company behind ] and ], as its CTO in April 2018.<ref name="Goldman 2018">{{cite web \| last=Goldman \| first=Joshua \| title=Former Mt. Gox bitcoin exchange CEO Karpeles lands new job \| website=CNET \| date=2018-04-23 \| url=https://www.cnet.com/news/mt-gox-bitcoin-exchange-former-ceo-karpeles-lands-new-job/ \| access-date=2018-04-29}}</ref> In November 2019, Private Internet Access was acquired by ] for $127.6 million.<ref>{{Cite web \|title=Private Internet Access to Be Acquired by Kape * TorrentFreak \|url=https://torrentfreak.com/private-internet-access-to-be-acquired-by-kape/ \|access-date=2024-07-11 \|language=en}}</ref> In 2022, Karpelès announced Ungox, a project aimed at evaluating the risks of cryptocurrency products and exchanges.<ref>{{Cite web \|last=Rubin \|first=Sam Reynolds, Damanick Dantes and James \|date=2022-04-11 \|title=First Mover Asia: Mark Karpeles’ UnGox Wants to Help Investors Assess the Risks of Crypto Products; Bitcoin Drops Below $40K \|url=https://www.coindesk.com/markets/2022/04/11/first-mover-asia-mark-karpeles-ungox-wants-to-help-investors-assess-the-risks-of-crypto-products-bitcoin-drops-below-40k/ \|access-date=2024-09-07 \|website=www.coindesk.com \|language=en}}</ref> In 2023, Karpelès was appointed as the minister of technology for Joseon, which operates a blockchain to manage its currency Mun<ref>{{Cite web \|last=Tomlin \|first=Bennett \|date=2023-12-19 \|title=Duke Roger Ver becomes finance minister for Joseon \|url=https://protos.com/duke-roger-ver-becomes-finance-minister-for-joseon/ \|access-date=2024-07-11 \|website=Protos \|language=en-US}}</ref>

	In ~~2024~~, ~~Karpelès~~ ~~announced~~ the ~~launch~~ of ~~EllipX~~, a ~~new~~ ~~cryptocurrency~~ ~~exchange~~.<ref>{{Cite web \|last=~~Reynolds~~ \|first=~~Sam~~ \|date=~~2024~~-09-04 \|title=Mt. Gox ~~Wouldn't~~ ~~Have~~ ~~Happened~~ ~~With~~ ~~Modern~~ ~~Tools, Mark Karpeles Says~~ \|url=https://~~www.coindesk~~.com~~/business/2024/09/04~~/mt-gox-~~wouldnt-have-happened~~-~~with~~-~~modern~~-~~tools~~-~~mark~~-~~karpeles~~/ \|access-date=2024-09-08 \|website=~~www.coindesk.com~~ \|language=en}}</ref> ~~The~~ ~~exchange~~ ~~will~~ ~~launch~~ in ] ~~and~~ ~~comply~~ ~~with~~ ] ~~regulations.<ref>{{Cite~~ ~~news~~ ~~\|title=Former~~ ~~Mt.~~ ~~Gox~~ ~~CEO~~ ~~to launch EllipX crypto exchange in Europe \|url=https://cointelegraph~~.~~com/news/former-mt-gox-ceo-ellipx-crypto-exchange-europe}}</ref>~~<ref>{{Cite ~~web \|last=Bitcoin.com \|date=2024-09-05~~ \|title=~~Former~~ Mt Gox ~~CEO~~ ~~Mark~~ ~~Karpeles~~ to ~~Launch~~ ~~New~~ ~~Crypto~~ ~~Exchange~~ ~~With~~ ~~a Focus on Transparency – News Bytes Bitcoin~~ ~~News~~ \|url=https://~~news.bitcoin~~.com/~~former-~~mt-gox-~~ceo~~-~~mark~~-~~karpeles~~-to-~~launch~~-~~new~~-~~crypto~~-~~exchange~~-~~with~~-a-~~focus-on-transparency~~/ ~~\|access-date=2024-09-08 \|website=Bitcoin News~~}}</ref> ~~Karpelès~~ ~~stated~~ ~~that~~ ~~this~~ ~~new~~ ~~venture~~ ~~reflects~~ ~~his~~ ~~commitment~~ to ~~rebuilding~~ ~~trust~~ in ~~the~~ ~~crypto~~ ~~space~~ ~~after~~ ~~the~~ ~~collapse~~ of Mt. ~~Gox in 2014~~.~~<ref>{{Cite~~ ~~web~~ ~~\|date=2024-09-04~~ ~~\|title=Former~~ Mt. Gox ~~CEO~~ ~~Mark~~ ~~Karpeles~~ to ~~Launch~~ ~~New~~ ~~Crypto~~ ~~Exchange This Month \|url=https://www.blockhead.co/2024/09/04/former~~-~~mt-gox-ceo-mark-karpeles-to-launch-new-crypto-exchange-this-month-2/~~ ~~\|access-date=2024-09-08~~ ~~\|website=Blockhead~~ ~~\|language=en}}</ref>~~ ~~Karpelès~~ ~~serves~~ as ~~the chief technology officer of the~~ ~~company~~.<ref>{{Cite web \|date=~~2024~~-09-04 \|title=~~Ex-~~Mt. Gox ~~CEO~~ to ~~right~~ ~~wrongs~~ ~~with~~ ~~new~~ ~~exchange EllipX~~ \|url=https://~~crypto~~.~~news~~/ex-mt-~~gox~~-~~ceo~~-~~to-right-wrongs-with-new-exchange-ellipx/~~ \|access-date=~~2024~~-09-08 \|website=~~crypto.news~~ \|language=en~~-US~~}}</ref>		In June 2018, the ] approved the petition, lead by Karpelès, to begin civil rehabilitation proceedings.<ref>{{Cite web \|last=Drake \|first=Ed \|date=2020-12-17 \|title=Mt. Gox trustee announces rehabilitation plan for creditors \|url=https://coingeek.com/mt-gox-trustee-announces-rehabilitation-plan-for-creditors/ \|access-date=2024-09-08 \|website=CoinGeek \|language=en-US}}</ref> This allowed for more flexible repayment terms, including compensation based on the current value of the lost coins.<ref>{{Cite news \|title=Mt. Gox creditors could receive billions as trustee announces approval of rehabilitation plan \|url=https://cryptonary.com/mt-gox-creditors-could-receive-billions-as-trustee-announces-approval-of-rehabilitation-plan/}}</ref> Creditors were able to start filing new claims under these proceedings on August 23, 2018. However, by June 2021, a U.S. Federal lawsuit by Mt. Gox customers was unable to proceed as a class-action lawsuit, which placed hopes of compensation in jeopardy.<ref>{{Cite web \|last=Gray \|first=Duane Morris LLP-C. Neil \|date=2021-06-29 \|title=U.S. Federal Lawsuit by Mt. Gox Customers Cannot Proceed as a Class Action \|url=https://www.lexology.com/library/detail.aspx?g=fc84ae15-0e18-4b53-afc2-927af6976166 \|access-date=2022-01-24 \|website=Lexology \|language=en}}</ref>

	== ~~Arrests~~ ~~and convictions~~ ==		=== Repayment process ===
			On July 5, 2024, Mt. Gox began repaying its creditors in Bitcoin and ] under the legal rehabilitation plan.<ref>{{Cite web \|last=Sen \|first=Vivek \|date=2024-07-05 \|title=Bitcoin Price Falls as Mt Gox Starts Repayments \|url=https://bitcoinmagazine.com/business/bitcoin-price-falls-as-mt-gox-starts-repayments \|access-date=2024-07-11 \|website=Bitcoin Magazine - Bitcoin News, Articles and Expert Insights \|language=en}}</ref> Attorney Nobuaki Kobayashi oversees the process, ensuring that all creditor verifications and agreements are in place before disbursements.<ref>{{Cite news \|title=Breaking: Mt. Gox trustee changes repayment deadline to October 2024 \|url=https://cointelegraph.com/news/mt-gox-trustee-changes-repayment-deadline-october-2024}}</ref> The repayments mark a significant moment as creditors have been waiting for nearly a decade since the exchange’s collapse in 2014.<ref>{{Cite web \|last=Sigalos \|first=Ryan \|last2=Browne \|first2=MacKenzie \|date=2024-07-05 \|title=Mt. Gox begins repaying bitcoin to creditors a decade after exchange's collapse. What it means \|url=https://www.cnbc.com/2024/07/05/mt-gox-begins-repaying-bitcoin-to-creditors-a-decade-on-from-collapse.html \|access-date=2024-07-11 \|website=CNBC \|language=en}}</ref><ref>{{Cite web \|last=Reynolds \|first=Parikshit \|last2=Mishra \|first2=Sam \|date=2024-07-05 \|title=Mt. Gox Begins Repayments in Bitcoin and Bitcoin Cash \|url=https://www.coindesk.com/business/2024/07/05/mt-gox-begins-repayments-in-bitcoin-and-bitcoin-cash/ \|access-date=2024-07-11 \|website=www.coindesk.com \|language=en}}</ref>
	In 2010, at the age of 25, Karpelès was found guilty of fraud during a trial in absentia in France related to his actions on a private server, and he received a suspended sentence of one year in jail.<ref>{{cite news \|last=Farivar \|first=Cyrus \|date=1 August 2014 \|title=Why the head of Mt. Gox Bitcoin exchange should be in jail \|url=https://arstechnica.com/tech-policy/2014/08/why-the-head-of-mt-gox-bitcoin-exchange-should-be-in-jail/ \|access-date=1 August 2014 \|newspaper=]}}</ref><ref>{{cite news \|last=Alonso \|first=Pierre \|date=1 August 2014 \|title=En France, le passé trouble de l'ancien " baron du bitcoin " \|trans-title=Old bitcoin baron's old trouble in France \|url=http://www.lemonde.fr/pixels/article/2014/08/01/en-france-le-passe-trouble-de-l-ancien-baron-du-bitcoin_4464044_4408996.html \|access-date=1 August 2014 \|newspaper=] \|language=fr}}</ref>

		⚫	Of the 850,000 lost bitcoins, 200,000 bitcoins were recovered, of which 60,000 were later sold by the trustee to secure funds.<ref>{{Cite web \|title=Mt. Gox creditors have until November to file claims \|url=https://www.zdnet.com/article/mt-gox-creditors-have-until-november-to-file-claims/ \|access-date=2024-07-11 \|website=ZDNET \|language=en}}</ref> Given the dramatic increase in Bitcoin's value, the repayment process is substantial.<ref>{{Cite web \|last=Rowe \|first=Niamh \|title=Bitcoin slumps 12% over past week as Mt. Gox repayments flood market \|url=https://fortune.com/crypto/2024/07/08/bitcoin-slumps-mt-gox-governments-liquidating-crypto/ \|access-date=2024-09-08 \|website=Fortune Crypto \|language=en}}</ref> In early July 2024, Mt. Gox moved 47,228 BTC,<ref>{{Cite web \|last=Godbole \|first=Omkar \|date=2024-07-05 \|title=Bitcoin Slumps Below $54K as Mt. Gox Moves $2.6B in BTC \|url=https://www.coindesk.com/markets/2024/07/05/bitcoin-dips-below-54k-as-mt-gox-moves-26b-in-btc/ \|access-date=2024-07-11 \|website=www.coindesk.com \|language=en}}</ref> valued at approximately $2.7 billion,<ref>{{Cite web \|last=Helms \|first=Kevin \|date=2024-07-05 \|title=Mt Gox Initiates Bitcoin Repayments to Creditors – Featured Bitcoin News \|url=https://news.bitcoin.com/mt-gox-initiates-bitcoin-repayments-to-creditors/ \|access-date=2024-07-11 \|website=Bitcoin News}}</ref> out of its offline wallets as part of the repayment process.<ref>{{Cite web \|last=Ray \|first=Siladitya \|title=Bitcoin Slumps To $55,000 As Defunct Exchange Mt. Gox Starts Paying Back Creditors \|url=https://www.forbes.com/sites/siladityaray/2024/07/05/bitcoin-slumps-to-54000-as-defunct-exchange-mt-gox-starts-paying-back-creditors/ \|access-date=2024-07-11 \|website=Forbes \|language=en}}</ref><ref>{{Cite web \|last=Bambysheva \|first=Nina \|title=MtGox $9 Billion Payout Is Creditors’ Gain But Bitcoin’s Pain \|url=https://www.forbes.com/sites/digital-assets/2024/06/24/mtgox-9-billion-payout-is-creditors-gain-but-bitcoins-pain/ \|access-date=2024-07-11 \|website=Forbes \|language=en}}</ref>
⚫	In April 2014, Karpeles was subpoenaed by the ]'s ] (FinCEN) to appear in ]., for testimony on 18 April 2014. Mt. Gox lawyers filed a court response stating that Karpelès did not have legal representation for this matter and therefore declined to appear on the initial date.<ref>{{cite news \|date=15 April 2014 \|title=Mt. Gox founder won't appear in U.S. for questions about bankruptcy case \|url=https://www.reuters.com/article/us-bitcoin-mtgox-idUSBREA3E02S20140415 \|access-date=24 February 2015 \|work=Reuters}}</ref><ref>{{cite web \|title=Mt. Gox founder won't attend US bankruptcy hearing \|url=http://www.cnet.com/news/mt-gox-founder-wont-attend-bitcoin-exchanges-bankruptcy-hearing/ \|access-date=24 February 2015 \|work=CNET \|publisher=CBS Interactive}}</ref> They requested a new date for his testimony, which was set for May 5, 2014.<ref>{{cite web \|author=John Ribeiro \|date=15 April 2014 \|title=Mt. Gox seeks postponement of CEO's U.S. court deposition \|url=http://www.computerworld.com/s/article/9247673/Mt._Gox_seeks_postponement_of_CEO_s_U.S._court_deposition?taxonomyId=17 \|access-date=24 February 2015 \|work=Computerworld}}</ref><ref>{{cite news \|date=15 April 2014 \|title=BBC News - MtGox chief refuses to go to Bitcoin bankruptcy hearing \|url=https://www.bbc.com/news/technology-27032221 \|access-date=24 February 2015 \|work=BBC News}}</ref>

			On July 22, 2024, the estate transferred $2.85 billion worth of Bitcoin to new wallets, with $340 million of that sum being sent to addresses owned by ].<ref>{{Cite web \|last=Benjamin \|first=Godfrey \|date=2024-07-23 \|title=Just-In: Kraken Begins Distributing Mt Gox Creditors In Bitcoin \|url=https://coingape.com/just-in-kraken-begins-distributing-mt-gox-creditors-in-bitcoin/ \|access-date=2024-07-24 \|website=CoinGape \|language=en-US}}</ref> Shortly thereafter, an additional 37,477 BTC, worth $2.5 billion, was transferred to an unknown wallet.<ref>{{Cite web \|last=Karanja \|first=Evans \|date=2024-07-24 \|title=Bitcoin Cash Price Slides 5% on Escalating Mt. Gox Creditors Kraken Withdrawals \|url=https://coingape.com/markets/bitcoin-cash-price-slides-5-on-escalating-mt-gox-creditors-kraken-withdrawals/ \|access-date=2024-07-24 \|website=CoinGape \|language=en-US}}</ref>
⚫	On August 1, 2015, Karpelès was arrested by Japanese authorities on suspicion of accessing the Mt. Gox computer system to manipulate account balances.<ref>{{cite news \|date=1 August 2015 \|title=MtGox bitcoin chief Mark Karpeles arrested in Japan \|url=https://www.bbc.com/news/world-asia-33745611 \|access-date=1 August 2015 \|work=BBC News}}</ref><ref>{{cite news \|author=Jonathan Soble \|date=1 August 2015 \|title=Mark Karpeles, Chief of Bankrupt Bitcoin Exchange, Is Arrested in Tokyo \|url=https://www.nytimes.com/2015/08/02/business/dealbook/mark-karpeles-mt-gox-bitcoin-arrested.html \|access-date=1 August 2015 \|newspaper=]}}</ref><ref>{{cite news \|date=1 August 2015 \|title=Mt. Gox bitcoin firm head arrested \|url=http://the-japan-news.com/news/article/0002326865 \|access-date=1 August 2015 \|newspaper=] by The ]}}</ref> Tokyo prosecutors indicted Karpelès on a series of charges, including embezzlement and aggravated breach of trust, and called for a 10-year prison sentence.<ref>{{Cite web \|last=Khatri \|first=Yogita \|date=2018-12-12 \|title=10-Year Jail Term Sought for Former Mt Gox CEO Mark Karpeles \|url=https://www.coindesk.com/markets/2018/12/12/10-year-jail-term-sought-for-former-mt-gox-ceo-mark-karpeles/ \|access-date=2024-07-11 \|website=www.coindesk.com \|language=en}}</ref><ref>{{Cite web \|date=2019-03-15 \|title=Mt Gox Bitcoin exchange's Karpeles avoids jail time in Japan \|url=https://apnews.com/general-news-4cb64156038a48c1abbedfa64982537c \|access-date=2024-07-11 \|website=AP News \|language=en}}</ref> He was released on bail in July 2016, with the condition that he remain in Japan.<ref>{{Cite web \|date=2016-07-15 \|title=Karpeles released on bail in bitcoin embezzlement case \|url=https://www.japantimes.co.jp/news/2016/07/15/national/crime-legal/karpeles-released-bail-bitcoin-embezzlement-case/ \|access-date=2021-03-05 \|website=The Japan Times \|language=en-US}}</ref> On July 10, 2017, Karpelès ~~pleaded~~ not guilty to ~~the~~ charges.<ref>{{Cite news \|date=11 July 2017 \|title=Chief of bitcoin exchange Mt. Gox denies embezzlement as trial opens \|url=https://www.reuters.com/article/us-japan-bitcoin-mt-gox/chief-of-bitcoin-exchange-mt-gox-pleads-not-guilty-to-embezzlement-nikkei-idUSKBN19W07Z \|access-date=2017-11-06 \|work=Reuters}}</ref>

	On 14 ~~March~~ ~~2019~~, the ] ~~found~~ ~~Karpelès~~ ~~guilty~~ of ~~one~~ ~~count~~ of ~~data~~ ~~manipulation~~ ~~related~~ to ~~Mt.~~ ~~Gox's account balances~~.<ref>{{Cite news \|date=~~2019~~-03-15 \|title=~~Former~~ Mt. Gox ~~CEO~~ ~~Mark~~ ~~Karpeles~~ ~~Gets Suspended Jail Term~~ \|url=https://~~www~~.~~bloomberg.com~~/~~news/articles/2019~~-03-~~15/former~~-~~bitcoin~~-~~baron~~-~~mark~~-~~karpeles~~-~~gets~~-~~suspended~~-~~jail~~-~~term~~ \|access-date=2024-07-11 \|work=~~Bloomberg~~.~~com~~ \|language=en}}</ref> ~~The~~ ~~court~~ ~~found~~ ~~Karpelès~~ ~~not~~ ~~guilty~~ of ~~all~~ ~~other~~ ~~charges~~ ~~and~~ ~~handed~~ ~~down~~ a ~~suspended~~ ~~prison~~ ~~sentence~~ ~~for~~ ~~the~~ ~~falsification~~ ~~conviction~~.<ref>{{Cite ~~news~~ \|last=~~Dooley~~ \|first=~~Ben~~ ~~\|date=2019-03-15 \|title=Bitcoin Tycoon Who Oversaw Mt~~. ~~Gox Implosion Gets Suspended Sentence~~ \|~~url=https://www.nytimes.com/2019/03/15/business/bitcoin-mt-gox-mark-karpeles-sentence.html \|access-~~date=2024-07-~~11 \|work=The New York Times \|language=en-US \|issn=0362-4331}}</ref><ref>{{Cite web \|date=2019-03-14~~ \|title=~~MtGox~~ ~~bitcoin~~ ~~founder~~ ~~learns~~ ~~fate~~ on ~~embezzlement~~ ~~charges~~ \|url=https://~~www.france24~~.com/~~en/20190315~~-~~mtgox~~-bitcoin-~~founder~~-~~learns~~-~~fate-embezzlement~~-~~charges~~ \|access-date=2024-07-11 \|website=~~France~~ 24 \|language=en}}</ref>		As of late July 2024, approximately 40% of the Bitcoin owed to Mt. Gox creditors had been distributed, leaving about 60% still to be returned.<ref>{{Cite news \|date=2024-07-23 \|title=Bitcoin (BTC) Price Slips as Mt. Gox Repayments Pick Up Steam \|url=https://u.today/bitcoin-btc-price-slips-as-mt-gox-repayments-pick-up-steam \|access-date=2024-07-24 \|work=U.Today \|language=en}}</ref> This ongoing process involves significant movements in the cryptocurrency market, with the total amount owed to creditors estimated to be around $10 billion.<ref>{{Cite web \|last=Jamal \|first=Nynu V. \|date=2024-07-24 \|title=Kraken Begins Distributing Bitcoin to Mt. Gox Creditors \|url=https://coinedition.com/kraken-begins-distributing-bitcoin-to-mt-gox-creditors/ \|access-date=2024-07-24 \|website=Coin Edition \|language=en-US}}</ref>

		⚫	The total sum owed to creditors accounts for roughly 0.7% of the total Bitcoin in circulation.<ref>{{Cite web \|last=Browne \|first=MacKenzie \|last2=Sigalos \|first2=Ryan \|date=2024-07-01 \|title=Collapsed bitcoin exchange Mt. Gox is about to unload $9 billion of coins onto the market. Here's what it means \|url=https://www.cnbc.com/2024/07/01/mt-gox-about-to-unload-9-billion-of-bitcoin-what-it-means-for-btc.html \|access-date=2024-07-11 \|website=CNBC \|language=en}}</ref><ref>{{Cite web \|title=Bitcoin Falls as Mt. Gox Repayment Roils Crypto Market \|url=https://www.investopedia.com/bitcoin-falls-as-mt-gox-repayment-roils-crypto-market-8674060 \|access-date=2024-07-11 \|website=Investopedia \|language=en}}</ref> The 850,000 lost bitcoins were worth approximately $450 million at the time of the hack, and the 140,000 bitcoins recovered are worth around $10 billion at a price of $65,000 per bitcoin by end of July 2024.{{Citation needed\|date=September 2024}} This means that creditors are receiving about 16 times more value in today's market.<ref>{{Cite web \|last=Sigalos \|first=Ryan \|last2=Browne \|first2=MacKenzie \|date=2024-06-29 \|title=Bitcoin windfall coming for Mt. Gox creditors after decade-long wait and 10,000% price spike \|url=https://www.cnbc.com/2024/06/29/bitcoin-windfall-comes-for-mt-gox-creditors-after-10000percent-price-spike.html \|access-date=2024-07-11 \|website=CNBC \|language=en}}</ref>
⚫	During the 2015 trial of ] for operating the ], his defense argued that Karpelès, rather than Ulbricht, was the individual behind the pseudonym "Dread Pirate Roberts".<ref>{{Cite web \|last=Paul \|first=Kari \|date=2015-01-15 \|title=Defense in Silk Road Trial Says Mt. Gox CEO Was the Real Dread Pirate Roberts \|url=https://www.vice.com/en_us/article/xyw53j/defense-in-silk-road-trial-says-mt-gox-ceo-was-the-real-dread-pirate-roberts \|access-date=2019-05-31 \|website=Vice \|language=en-US}}</ref> ] Investigations agent Jared Der-Yeghiayan had also suspected Karpelès during the 2012–2013 investigation, though no evidence supported this theory.<ref>{{Cite web \|last=Jeong \|first=Sarah \|title=Was Mt. Gox CEO The Dread Pirate Roberts? The DHS Once Believed It \|url=https://www.forbes.com/sites/sarahjeong/2015/01/16/dhs-agent-thought-mt-gox-ceo-was-dpr/ \|access-date=2024-09-10 \|website=Forbes \|language=en}}</ref> Karpelès denied any involvement on Twitter,<ref>{{Cite web \|last=Koebler \|first=Jason \|date=2015-01-16 \|title=Mt. Gox CEO Denies Silk Road Involvement: 'I Am Not Dread Pirate Roberts' \|url=https://www.vice.com/en_us/article/8qxdjv/mt-gox-ceo-i-have-nothing-to-do-with-silk-road-ross-ulbricht-dread-pirate-roberts \|access-date=2019-05-31 \|website=Vice \|language=en-US}}</ref><ref>{{cite web \|date=15 January 2015 \|title=Mark Karpeles on Twitter: "This is probably going to be disappointing for you, but I am not and have never been Dread Pirate Roberts." \|url=https://twitter.com/MagicalTux/status/555892860654862337 \|access-date=28 January 2015}}</ref> and ] was ultimately convicted.<ref name="ars-conviction">{{cite web \|last=Mullin \|first=Joe \|date=4 February 2015 \|title=Ulbricht guilty in Silk Road online drug-trafficking trial \|url=https://arstechnica.com/tech-policy/2015/02/ulbricht-guilty-in-silk-road-online-drug-trafficking-trial/ \|access-date=4 February 2015 \|work=Ars Technica}}</ref>

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Revision as of 04:44, 19 September 2024

Former CEO of Mt. Gox

Mark Karpelès
Born	Mark Marie Robert Karpelès (1985-06-01) 1 June 1985 (age 39) Chenôve, France
Other names	MagicalTux
Citizenship	France
Occupation	Entrepreneur
Known for	Former CEO of Mt. Gox, Founding Member at Bitcoin Foundation

Mark Marie Robert Karpelès (born 1 June 1985), also sometimes known by his online alias MagicalTux, is the former CEO of bitcoin exchange Mt. Gox. Born in France, he moved to Japan in 2009. Under his leadership, Mt. Gox was the world's largest bitcoin exchange, handling over 70% of all bitcoin transactions at its peak in 2014. In September 2024, Karpeles announced the upcoming launch of EllipX, a new MiCA compliant cryptocurrency exchange, where he serves as Chief Technology Officer (CTO).

Early life and education

Born in Chenôve, France, he is the child of Anne-Robert Karpelès, a geologist. He was raised in Dijon. Between 1995 and 2000 he was educated at Collège Prieuré de Binson in Châtillon-sur-Marne, near Dormans. He then spent one year at Lycée Claude Bernard in Paris before completing his education in 2003 at Lycée Louis Armand in Paris.

Career

Karpelès began his professional journey as a PHP developer. In 2009, Karpelès founded Tibanne Co. Ltd., a Japan-based bitcoin related technology provider, where he served as CEO. He was a founding member of the Bitcoin Foundation, created in 2012 with a mission to standardize and promote bitcoin, and served on its board until February 2014. During this time, Karpelès, through Mt. Gox, donated approximately 10,000 Bitcoin to the Bitcoin Foundation as part of its Platinum Industry Membership.

Karpelès corresponded with Satoshi Nakamoto regarding the possibility of developing a separate Bitcoin client in early 2010, intending to incorporate more flexibility and features into the software. Nakamoto advised against it, citing concerns that multiple clients operating on the same blockchain could cause issues with consensus.

Mt.Gox

In 2011, Karpelès acquired the Mt. Gox bitcoin exchange site from programmer Jed McCaleb, which was later incorporated in Tokyo, with its original owner receiving 12% shares of the new company. Karpelès transformed Mt. Gox into the largest Bitcoin exchange in the world. Under his management, the platform handled the majority of global Bitcoin transactions by 2014, becoming a crucial player in the cryptocurrency Industry. Despite its success, Mt. Gox faced growing operational and security challenges, compounded by the rapid expansion of its user base. Karpelès implemented various security upgrades and sought to stabilize the platform. However, Mt. Gox experienced a major theft in 2014, which resulted in the loss of a significant amount of Bitcoin. Mt. Gox filed subsequently for bankruptcy in Japan on 28 February 2014, and for Chapter 15 bankruptcy in Texas in March 2014.

Private Internet Access (PIA)

Following the collapse of Mt. Gox, Karpelès became the Chief Technology Officer (CTO) of London Trust Media, the company behind Freenode and Private Internet Access, in April 2018. In November 2019, Private Internet Access was acquired by Kape Technologies for $127.6 million.

Ungox

In 2022, Karpelès announced Ungox, a project aimed at evaluating the risks of cryptocurrency products and exchanges. He later shared plans to transition Ungox into a non-profit organization, with the goal of providing transparent, non-commercial risk assessments to help prevent future events similar to the Mt. Gox collapse.

Joseon

In 2023, Karpelès was appointed as the Minister of Technology for Joseon, a virtual nation-state. In this role, Karpelès is involved in overseeing technological developments and innovations within the jurisdiction of Joseon, which emphasizes cyber sovereignty and the use of blockchain technology.

EllipX

In 2024, Karpelès announced his return to the cryptocurrency industry with the launch of EllipX, a new cryptocurrency exchange. Set to launch by end of September in Poland, EllipX is built on principles of transparency, security, and compliance with European Union regulations, specifically the Markets in Crypto-Assets (MiCA) framework. Karpelès stated that this new venture reflects his commitment to rebuilding trust in the crypto space after the collapse of Mt. Gox in 2014.

EllipX differentiates itself by employing a segmented operational structure, inspired by traditional financial exchanges like the New York Stock Exchange. The platform separates its trading, brokering, and asset storage functions to ensure transparency and minimize conflicts of interest. Furthermore, Karpelès has implemented advanced security measures, such as multi-signature offline wallets and hardware security modules (HSM), to protect user assets.

Karpelès serves as the Chief Technology Officer of EllipX, overseeing the technical aspects of the exchange and ensuring it adheres to the highest standards of security and performance.

Mt. Gox judicial proceedings

In April 2014, Karpeles was subpoenaed by the United States Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) to appear in Washington, D.C., for testimony on 18 April 2014. Mt. Gox lawyers filed a court response stating that Karpelès did not have legal representation for this matter and therefore declined to appear on the initial date. They requested a new date for his testimony, which was set for May 5th, 2014.

On August 1, 2015, Karpelès was arrested by Japanese authorities on suspicion of accessing the Mt. Gox computer system to manipulate account balances. He was released on bail in July 2016, with the condition that he remain in Japan. On July 10, 2017, Karpelès pled not guilty to charges of embezzlement and data manipulation.

In 2017, Alexander Vinnik, the Russian operator of the Bitcoin exchange BTC-e, was arrested in Greece and indicted for laundering over $4 billion, including funds stolen from the hack of Bitcoin exchange Mt. Gox. US authorities accused Vinnik of using BTC-e to launder money for individuals involved in crimes such as computer hacking and drug trafficking. They also linked him to the collapse of Mt. Gox in 2014, alleging that he laundered the stolen funds through BTC-e and Tradehill, another exchange he owned. Vinnik's arrest was part of a series of US operations against Russian cybercriminals in Europe. In May 2024, Vinnik pleaded guilty to conspiracy to commit money laundering.

On 14 March 2019, the Tokyo District Court acquitted former Mt. Gox chief Karpelès of most charges in major bitcoin case. The Tokyo District Court found Karpelès guilty on only one count of data manipulation related to Mt. Gox's account balances. Tokyo prosecutors had indicted Karpelès on a series of charges, including embezzlement and aggravated breach of trust, and called for a 10-year prison sentence. But the Tokyo District Court found Karpelès not guilty of all other charges and handed down a suspended prison sentence for the falsification conviction. His acquittal on the more serious allegations of embezzlement and aggravated breach of trust was a surprise. The conviction rate in Japan after prosecutors file criminal charges is above 99%.

In June 2023, the United States Department of Justice charged two Russian nationals, Alexey Bilyuchenko and Aleksandr Verner, with conspiring to launder approximately 647,000 bitcoins stolen in the 2014 hack of Mt. Gox. The stolen bitcoins were valued at roughly half a billion dollars then.

During the 2015 trial of Ross William Ulbricht for operating the Silk Road marketplace, his defense argued that Karpelès, rather than Ulbricht, was the individual behind the pseudonym "Dread Pirate Roberts". Homeland Security Investigations agent Jared Der-Yeghiayan had also suspected Karpelès during the 2012–2013 investigation, though no evidence supported this theory. Karpelès denied any involvement on Twitter, and Ulbricht was ultimately convicted.

Mt. Gox bankruptcy proceedings

Mt. Gox's bankruptcy proceedings initially planned to repay creditors in Japanese yen at a price of approximately 483 US dollars per bitcoin, resulting in a total repayment of 45.6 billion Japanese yen (around 400 million US dollars). At the market price at the beginning of 2022 (around $35,000 per bitcoin), this would have left Karpelès with a significant amount of wealth. However, Karpelès stated that he did not want the profits he was set to receive from the bankruptcy proceedings. Under Japanese bankruptcy laws, around $1 billion of the money received would go to the company's shareholders, with the largest being Karpelès’ company Tibanne, which owned 88% of Mt. Gox.

In June 2018, the Tokyo District Court approved the petition, lead by Karpelès, to begin civil rehabilitation proceedings. This allowed for more flexible repayment terms, including compensation based on the current value of the lost coins. Creditors were able to start filing new claims under these proceedings on August 23, 2018. However, by June 2021, a U.S. Federal lawsuit by Mt. Gox customers was unable to proceed as a class-action lawsuit, which placed hopes of compensation in jeopardy.

Repayment process

On July 5, 2024, Mt. Gox began repaying its creditors in Bitcoin and Bitcoin Cash under the legal rehabilitation plan. Attorney Nobuaki Kobayashi oversees the process, ensuring that all creditor verifications and agreements are in place before disbursements. The repayments mark a significant moment as creditors have been waiting for nearly a decade since the exchange’s collapse in 2014.

Of the 850,000 lost bitcoins, 200,000 bitcoins were recovered, of which 60,000 were later sold by the trustee to secure funds. Given the dramatic increase in Bitcoin's value, the repayment process is substantial. In early July 2024, Mt. Gox moved 47,228 BTC, valued at approximately $2.7 billion, out of its offline wallets as part of the repayment process.

On July 22, 2024, the estate transferred $2.85 billion worth of Bitcoin to new wallets, with $340 million of that sum being sent to addresses owned by Bitstamp. Shortly thereafter, an additional 37,477 BTC, worth $2.5 billion, was transferred to an unknown wallet.

As of late July 2024, approximately 40% of the Bitcoin owed to Mt. Gox creditors had been distributed, leaving about 60% still to be returned. This ongoing process involves significant movements in the cryptocurrency market, with the total amount owed to creditors estimated to be around $10 billion.

The total sum owed to creditors accounts for roughly 0.7% of the total Bitcoin in circulation. The 850,000 lost bitcoins were worth approximately $450 million at the time of the hack, and the 140,000 bitcoins recovered are worth around $10 billion at a price of $65,000 per bitcoin by end of July 2024. This means that creditors are receiving about 16 times more value in today's market.