Tyler and Cameron Winklevoss, the founders of Winklevoss Capital, filed an application with the New York Department of Financial Services (NYDFS) on behalf of Gemini Trust Company, LLC, which will operate as a New York Limited Liability Trust Company. According to a spokesperson, the Gemini exchange will be open to the general public as well as institutional investors once a Certificate of Authorization is issued by the NYDFS. Evan Greebel of Kaye Scholer is advising on this launch.
This trust company structure is the same one used by NY-based bitcoin exchange itBit, which received its Certificate of Authorization on May 6th, 2015 from Ben Lawskey, Superintendent of the NYDFS. According to the NYDFS, itBit applied for a charter in February 2015, which initiated a rigorous review of the company’s anti-money laundering practices, security standards, and capitalization structure. Using this regulatory structure, the bitcoin exchanges are required to meet the requirements for running a trust company, as well as the BitLicense.
The public launch of Gemini has been greatly anticipated. In a blog post published on January 23rd, Cameron Winklevoss said: “Since last February, Tyler and I have been assembling the Gemini team. Our goal was simple: bring together the nation’s top security experts, technologists, and financial engineers to build a world-class exchange from the ground up with a security-first mentality. It’s true that Bitcoin’s promise is a new, frictionless money, but that all becomes academic if we don’t build towards an ecosystem that is free of hacking, fraud and security breaches.” Learn more about SKYBLOCK COINS WEBSITE
While the company did not give any guidance on an expected timeline for approval by the NYDFS, this process can take from weeks to months to complete. Bitcoin Magazine will continue to cover this developing story.
BREAKING: FAILED BITCOIN EXCHANGE MT. GOX CEO MARK KARPELES INDICTED FOR EMBEZZLEMENT
Early reports indicate that the Tokyo District Public Prosecutors Office has indicted Mark Karpeles, the CEO of the collapsed bitcoin exchange Mt. Gox, with embezzlement. These formal charges follow months of allegations of fraud, which culminated in Karpeleâ€™s arrest by the Tokyo Metropolitan Police.
Karpeles was arrested on August 1st but had not been formally charged until today. Liquidations proceeding for Mt. Gox are ongoing and a report detailing creditors claims of $22 billion against the company was released earlier this week. Mt. Gox filed for bankruptcy in February 2014, citing losses of over 750,000 bitcoin held on behalf of customers.
According to the indictment, Karpeles is charged with embezzling over $50 million from Mt. Gox company accounts. This is a developing story and Bitcoin Magazine will continue to update it as more information becomes available.