MtGox's CEO and majority owner Mark Karpeles.Reuters
Mark Karpeles, CEO of MtGox, personally controlled all key operations of the failed bitcoin exchange even when its business grew exponentially on the back of skyrocketing bitcoin prices.
Reuters citing former staff and associates of MtGox reported that French-born Karpeles was indifferent to the exchange's commercial success.
MtGox became the world's largest exchange for bitcoin, handling business worth $3bn (£1.8bn, €2.2bn) in 2013, as the price of bitcoin rose above $1,000. As bitcoin gained popularity, MtGox's user base rose to 50,000 from just 3,000 within three months.
Karpeles also increased the number of employees at the firm to keep up with increasing customer support queries, and eventually rented office space in central Tokyo with 30 employees.
When the company was hit by a security breach, Karpeles retreated to build a more secure trading platform but left the exchange offline.
"He wasn't ever focused on Mt. Gox like he should have been," Roger Ver, a bitcoin enthusiast who volunteered to help Karpeles, said.
Karpeles had a tight grip on all of the company's affairs and was the only person with access to the exchange's bank accounts and bitcoin holdings. He also refused to share passwords with other employees.
"Karpeles had no particular interest in the libertarian philosophy that drove many bitcoin adopters," Reuters writes. He was interested in the technology as a "nice experiment."
When MtGox boomed, he did not entertain prospective investors who approached him with proposals, according to former employees. He refused to show them the accounts of the company.
While MtGox's rivals were developing sophisticated trading platforms, Karpeles diverted his attention from the exchange to buy an unrelated software company called Shade 3D. In addition, he began to work on launching a 'Bitcoin Cafe' – which would accept the digital currency as payment - on the ground floor of the office, according to records and former staff.
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