Bitrabo Editorial
Mark Karpelès, the ex-CEO of the now-defunct Mt. Gox cryptocurrency exchange, has jumped back into the world of Bitcoin with a new initiative called EllipX. Karpelès made this announcement recently on X, introducing the EllipX Wallet—a product focused on enhancing the security and usability of crypto storage.
Introduction of EllipX by Karpelès
The initial reveal of EllipX emerged on X on August 6, urging the cryptocurrency community to follow their journey. Karpelès has now provided a detailed overview of the company’s debut product via a comprehensive blog post. The EllipX Wallet is introduced as a cutting-edge solution that utilizes Multi-Party Computation (MPC) to improve security by splitting a user’s private key among multiple custodians: the user, their device, and EllipX’s secure environment.
This wallet employs a threshold signature scheme (TSS), an advanced cryptographic technique for managing digital signatures, enabling multiple parties to collectively sign transactions without exposing their entire private key, hence reducing the risk of theft. According to the EllipX blog, this launch signifies a significant step towards their goal of creating products that shape the future of crypto and make it accessible to everyone.
The user-centric MPC-based crypto mobile wallet, EllipX Wallet, eliminates the need for traditional seed phrases required for wallet recovery. It will initially support Ethereum (ETH) and later incorporate Bitcoin (BTC), Bitcoin Cash (BCH), ERC-20 tokens, and more.
Users can manage various cryptocurrencies, conduct fee-less transactions, and securely engage with decentralized applications (dApps) using the in-app browser offered by the wallet.
A crucial feature of EllipX Wallet is its strong emphasis on security. It leverages the hardware security of the user’s device, biometric data, and EllipX’s authentication technology to protect private keys. Karpelès highlighted this innovative approach as a move towards enhancing crypto accessibility and safety.
Response from the Community
This new endeavor signifies a significant comeback for Karpelès, whose reputation was tarnished by the collapse of Mt. Gox in 2014 due to a major hack resulting in the loss of 850,000 Bitcoins, impacting the perception of crypto security globally.
Following the catastrophic incident at Mt. Gox, community reactions have been mixed, with some wishing Karpelès success in his new venture, while others criticized him. His central yet controversial role in the downfall of Mt. Gox, once the largest bitcoin exchange globally, was marred by multiple security breaches.
In 2015, Karpelès was arrested in Japan on charges of embezzlement and data manipulation, and despite being found guilty of falsifying financial records, he received a suspended sentence.
As of the latest update, BTC was trading at $61,068.