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Mark Karpelès

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Mark Karpelès
Born
Mark Marie Robert Karpelès

(1985-06-01) 1 June 1985 (age 39)
Chenôve, France
Other namesMagicaltux
CitizenshipFrench
OccupationEntrepreneur
Known forFormer CEO of Mt. Gox

Mark Marie Robert Karpelès[1][2] (born 1 June 1985) is the former CEO of bitcoin exchange Mt. Gox.[3] Born in France, he moved to Japan in 2009.[4][5] Under his leadership, Mt. Gox was the world's largest bitcoin exchange.[6][7][8]

Early life and education

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Born in Chenôve, France, Karpelès is the child of geologist Anne-Robert Karpelès.[9] He was raised in Dijon.[9][10] From 1995 to 2000, he attended Collège Prieuré de Binson in Châtillon-sur-Marne, near Dormans.[3] He then spent one year at Lycée Claude Bernard in Paris before completing his education in 2003 at Lycée Louis Armand in Paris.[3]

Career

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In 2009, Karpelès founded Tibanne Co. Ltd., a Japan-based bitcoin related technology provider, where he served as CEO.[11][12] 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.[13][14]

Mt. Gox

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In 2011, Karpelès acquired the Mt. Gox bitcoin exchange site from programmer Jed McCaleb, with its original owner receiving 12% of the shares of the new company.[15][16][17] Under his management, the platform handled the majority of global Bitcoin transactions by 2014.[18] [19] Despite its growth, Mt. Gox faced growing operational and security challenges, compounded by the rapid expansion of its user base.[20] Mt. Gox experienced a major theft in 2014 that resulted in the loss of a significant amount of Bitcoin.[21] Mt. Gox filed subsequently for bankruptcy in Japan on 28 February 2014 and for Chapter 15 bankruptcy in Texas in March 2014.[1][22][23]

Subsequent ventures

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After the collapse of Mt. Gox, Karpelès joined London Trust Media, the company behind Freenode and Private Internet Access, as its CTO in April 2018.[24] In 2023, Karpelès was appointed as the minister of technology for Joseon, which operates a blockchain to manage its currency Mun.[25] In 2024, Karpelès announced the launch of EllipX, a new cryptocurrency exchange, which will launch in Poland with Karpelès serving as chief technology officer.[26][27]

Judicial proceedings

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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.[28][29] They requested a new date for his testimony, which was set for May 5th, 2014.[30][31]

On August 1, 2015, Karpelès was arrested by Japanese authorities on suspicion of accessing the Mt. Gox computer system to manipulate account balances.[32][33][34] He was released on bail in July 2016, with the condition that he remain in Japan.[35] On July 10, 2017, Karpelès pled not guilty to charges of embezzlement and data manipulation.[36]

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.[37] In May 2024, Vinnik pleaded guilty to conspiracy to commit money laundering.[38]

On 14 March 2019, the Tokyo District Court acquitted Karpelès of most charges in major bitcoin case.[39] The Tokyo District Court found Karpelès guilty on only one count of data manipulation related to Mt. Gox's account balances.[40] 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.[41][42] The conviction rate in Japan after prosecutors file criminal charges is above 99%.[43][44]

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".[45] Homeland Security Investigations agent Jared Der-Yeghiayan had also suspected Karpelès during the 2012–2013 investigation, though no evidence supported this theory.[citation needed] Karpelès denied any involvement on Twitter,[46][47] and Ulbricht was ultimately convicted.[48]

References

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  1. ^ a b "Declaration of Robert Marie Mark Karpeles" (PDF). US Bankruptcy Court for the Northern District of Texas Dallas Division. p. 1. Retrieved 13 March 2014. The document, signed by "Robert Marie Mark Karpeles", was published by Ars Technica on the Scribd website, and according to Ars Technica is a court document filed in US Bankruptcy Court.
  2. ^ Farivar, Cyrus (10 March 2014). "MtGox files for US bankruptcy protection to put lawsuits on hold". Ars Technica.
  3. ^ a b c "Mark Robert KARPELÈS, 28 ans (TOKYO, CHATILLON SUR MARNE, PARIS)". Copains d'avant – L'Internaute (in French). CCM Benchmark Group. Retrieved 27 February 2014.
  4. ^ Warnock, Eleanor; Mochizuki, Takashi (28 February 2014). "Bitcoin's Mt. Gox: a look at the man in charge". The Wall Street Journal.
  5. ^ Philippe, Berry (27 February 2014). "MtGox: Mark Karpèles, un "supergeek" français au cœur du scandale bitcoin". 20 Minutes (in French). Retrieved 27 February 2014.
  6. ^ "Bitcoin rebounds to $57,000 after billions in Mt. Gox refunds fueled a selloff". Quartz. 8 July 2024. Retrieved 11 July 2024.
  7. ^ "Germans, Mt. Gox, or Feds: Who Caused the Bitcoin Dip?". Financial and Business News | Finance Magnates. 8 July 2024. Retrieved 11 July 2024.
  8. ^ Zielinski, Radek (8 July 2024). "Mt. Gox to repay investors in Bitcoin". ReadWrite. Retrieved 11 July 2024.
  9. ^ a b Gautronneau, Vincent (3 January 2014). "Le génie côte-d'orien qui fait trembler le net". Le Journal de Saône et Loire (in French).
  10. ^ Mick, Jason (5 March 2014). "Bitcoin King: Mt. Gox CEO Mark Karpelès' History of Arrests, Firings". DailyTech. Archived from the original on 9 March 2014. Retrieved 9 March 2014.
  11. ^ "US judge freezes assets of Mt.Gox bitcoin exchange boss". CNBC. 12 March 2014.
  12. ^ David Meyer (31 May 2013). "A Bitcoin Exchange Goes for Respectability". Businessweek.com. Archived from the original on 7 June 2013. Retrieved 24 February 2015.
  13. ^ "Mt. Gox resigns from Bitcoin Foundation". Reuters. 23 February 2014. Retrieved 25 February 2014.
  14. ^ "Mt. Gox quits Bitcoin Foundation board". PCWorld. 24 February 2014. Retrieved 24 February 2015.
  15. ^ Rachel Abrams Matthew Goldstein and Hiroko Tabuchi (28 February 2014). "Erosion of Faith Was Death Knell for Mt. Gox". The New York Times. Retrieved 24 February 2015.
  16. ^ Jeffries, Adrianne (1 April 2013). "Barons of Bitcoin". The Verge. Retrieved 13 March 2014.
  17. ^ "Bitcoin Exchange Mt. Gox Files for Bankruptcy in U.S. -- 2nd Update - WSJ.com". online.wsj.com. Archived from the original on 11 March 2014.
  18. ^ "Mt Gox: The brief reign of bitcoin's top exchange".
  19. ^ "Apparent Theft at Mt. Gox Shakes Bitcoin World".
  20. ^ McMillan, Robert. "The Inside Story of Mt. Gox, Bitcoin's $460 Million Disaster". Wired. ISSN 1059-1028. Retrieved 8 September 2024.
  21. ^ Hern, Alex (28 February 2014). "MtGox files for bankruptcy in Japan after collapse of bitcoin exchange". The Guardian. ISSN 0261-3077. Retrieved 8 September 2024.
  22. ^ "Bitcoin Exchange Mt. Gox Files for U.S. Bankruptcy as Death Spiral Continues". WIRED. Retrieved 24 February 2015.
  23. ^ McMillan, Robert. "The Inside Story of Mt. Gox, Bitcoin's $460 Million Disaster". Wired. ISSN 1059-1028. Retrieved 11 July 2024.
  24. ^ Goldman, Joshua (23 April 2018). "Former Mt. Gox bitcoin exchange CEO Karpeles lands new job". CNET. Retrieved 29 April 2018.
  25. ^ Tomlin, Bennett (19 December 2023). "Duke Roger Ver becomes finance minister for Joseon". Protos. Retrieved 11 July 2024.
  26. ^ "Former Mt. Gox CEO to launch EllipX crypto exchange in Europe".
  27. ^ "Former Mt. Gox CEO Mark Karpeles to Launch New Crypto Exchange This Month". Blockhead. 4 September 2024. Retrieved 8 September 2024.
  28. ^ "Mt. Gox founder won't appear in U.S. for questions about bankruptcy case". Reuters. 15 April 2014. Retrieved 24 February 2015.
  29. ^ "Mt. Gox founder won't attend US bankruptcy hearing". CNET. CBS Interactive. Retrieved 24 February 2015.
  30. ^ John Ribeiro (15 April 2014). "Mt. Gox seeks postponement of CEO's U.S. court deposition". Computerworld. Retrieved 24 February 2015.
  31. ^ "BBC News - MtGox chief refuses to go to Bitcoin bankruptcy hearing". BBC News. 15 April 2014. Retrieved 24 February 2015.
  32. ^ "MtGox bitcoin chief Mark Karpeles arrested in Japan". BBC News. 1 August 2015. Retrieved 1 August 2015.
  33. ^ Jonathan Soble (1 August 2015). "Mark Karpeles, Chief of Bankrupt Bitcoin Exchange, Is Arrested in Tokyo". The New York Times. Retrieved 1 August 2015.
  34. ^ "Mt. Gox bitcoin firm head arrested". The Japan News by The Yomiuri Shimbun. 1 August 2015. Retrieved 1 August 2015.
  35. ^ "Karpeles released on bail in bitcoin embezzlement case". The Japan Times. 15 July 2016. Retrieved 5 March 2021.
  36. ^ "Chief of bitcoin exchange Mt. Gox denies embezzlement as trial opens". Reuters. 11 July 2017. Retrieved 6 November 2017.
  37. ^ Gibbs, Samuel (27 July 2017). "'Criminal mastermind' of $4bn bitcoin laundering scheme arrested". The Guardian. ISSN 0261-3077. Retrieved 11 July 2024.
  38. ^ "Office of Public Affairs | BTC-e Operator Pleads Guilty to Money Laundering Conspiracy | United States Department of Justice". www.justice.gov. 3 May 2024. Retrieved 16 July 2024.
  39. ^ "BITCOIN AND THE CROSS-MARKET EFFECTS OF THE MT. GOX MELTDOWN". Issues In Information Systems. 2020. doi:10.48009/3_iis_2020_245-252. ISSN 1529-7314.
  40. ^ "Former Mt. Gox CEO Mark Karpeles Gets Suspended Jail Term". Bloomberg.com. 15 March 2019. Retrieved 11 July 2024.
  41. ^ Khatri, Yogita (12 December 2018). "10-Year Jail Term Sought for Former Mt Gox CEO Mark Karpeles". www.coindesk.com. Retrieved 11 July 2024.
  42. ^ "Mt Gox Bitcoin exchange's Karpeles avoids jail time in Japan". AP News. 15 March 2019. Retrieved 11 July 2024.
  43. ^ Helms, Kevin (15 March 2019). "Mt Gox CEO Mark Karpeles Found Not Guilty of Embezzlement – News Bitcoin News". Bitcoin News. Retrieved 11 July 2024.
  44. ^ "Why is the Japanese Conviction Rate so High?". Harvard Law School. Retrieved 11 July 2024.
  45. ^ Paul, Kari (15 January 2015). "Defense in Silk Road Trial Says Mt. Gox CEO Was the Real Dread Pirate Roberts". Vice. Retrieved 31 May 2019.
  46. ^ Koebler, Jason (16 January 2015). "Mt. Gox CEO Denies Silk Road Involvement: 'I Am Not Dread Pirate Roberts'". Vice. Retrieved 31 May 2019.
  47. ^ "Mark Karpeles on Twitter: "This is probably going to be disappointing for you, but I am not and have never been Dread Pirate Roberts."". 15 January 2015. Retrieved 28 January 2015.
  48. ^ Mullin, Joe (4 February 2015). "Ulbricht guilty in Silk Road online drug-trafficking trial". Ars Technica. Retrieved 4 February 2015.
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