Bitcoin Forum

So?

Deal that didn't go through isn't going through?

"Credible silicon valley-backed " exchange sues for $75m because they can't get free customers?

Fuck 'em.

The price already fell.

hah I just can say one thing: make some coffee because we are going to have a wild night ;)

All I care about is increasing my BTC, I realized how dumb I was for not taking advantage at 115. Never again. Was half a sleep today, but now I see. price is struggling around 100 right now. Oh boy.

I'm not sure about the BTC price, but I certainly won't be leaving any BTC with gox.

for the price this is extremely good news because US residents wont have to fill shitloads of papers and forms

Price has barely budged since news was announced.

Oh it will...

I agree that it's good news for US residents.

Now you can go back to using Mt. Gox directly if you want instead of the prospect of being forced to go through coinlab instead.

The whole situation is quite funny, because it illustrates how many conflicts of interest there were with this deal.

Now you have the Executive Director of the bitcoinfoundation, suing the bitcoinfoundation platium member Mt Gox for 75 Million dollars...who's owner also sits on the bitcoinfoundation board

I can imagine the bitcoinfoundation board meetings are a tad awkward.

Peter: Can someone tell Mark to pass the water.
Mark: Can someone tell Peter he can have his water in 8 months time after contract details are finalised at which point he can't have any.
Others: Awkward stares...

Assumptions:

1. users will want to take their savings the f*ck out, for fear their assets will be frozen otherwise.
2. Most users are, at best, verified status so they can't take out more than 100 btc/day or 10000 usd or eur /day. And not more than 50000 usd or eur per month anyway.

Assumption 2 will slow down the exodus of cash/coins.

Scenario 1: people try to get their cash out. Lots of fiat is removed from the market. Queues for withdrawals go up to the roof, and so do withdrawal delays. The removal of cash from the market causes utter price drops.

Scenario 2: people try to avoid delays in scenario 1 and try to get their btcs out to a different exchange. Price spiking in the long term due to the race to buy btcs and get the f out asap. (Bit like bitcoin-24 last days before official news of bank account being frozen).

A lot of US individuals are currently sleeping,this will definitely have an affect on the price and expect a major sell-off.

i hope they put gox out of business.   it would do the bitcoin world a favor.

the lawsuit does not give coinlab the legal right to take people's money. mtgox does not OWN that money. they can go after mtgox's money though

+1

The question is if MtGox will need additional cash for the process and start selling bitcoins for it.

I unfortunately disagree.  :( an exchange is not much different from a bank. With the difference that it's backed by no legislation to protect us.
Our Gox balance (fiat, btc) is money that Gox owes us. We are, in fact, Gox creditors. Guess what happens if Gox goes bankrupt...

voted up because i currently have bitcoins and I'm a mainstream speculation poster whereby all my posts are an attempt to manipulate prices in my favour :) :) :) :) :) :) :) :)

the difference is that banks LEND out your money (fractional reserve) they don't have people's money on hand.
it is legal and this is why they run out of money when people start defaulting on loans.
mtgox does not lend out coins or cash so everything they keep is 1:1
that money is not theirs
it's like NASDAQ being sued and them selling peoples' shares in stocks is a better example - can't happen.

when a bank gets suedthey are supposed to pay out of their money unless they are allowed to lend to themselves (which i'm not sure)

But it COULD all be seized by the police and released only after a lengthy legal process.

Like that vote will change anything :D

Some more information on Coinlab: https://bitcointalk.org/index.php?topic=196150.0