Bitcoinica Suit

[trentzb]

Referencing the post here:

https://bitcointalk.org/index.php?topic=96118.msg1112347#msg1112347

and complaint here:

https://docs.google.com/file/d/0B_ECG6JRZs-7dTZ5QS0xcUkxQjQ/edit#

After a cursory reading of the complaint I am getting the feeling that the Plaintiff's will fail to secure relief/judgement in their favor.

Has anyone reviewed the complaint? Thoughts?

[1715462435]

1715462435

[repentance]

What makes you think that the plaintiffs want the matter to go to trial?  The vast majority of lawsuits are either abandoned or settled before trial.  There are no deep pockets defendants in this matter so it's not in the interests of the plaintiffs that large amounts of money are spent on legal fees which cannot be recovered.  They're almost certainly looking for some kind of settlement offer and I suspect that they'd be happy to drop the matter in return for being given control of Intersango.

[2112]

The vast majority of lawsuits are either abandoned or settled before trial.

So very true, with the focus on "abandoned." Three reasons:

1) People who lost legitimate money, but it was OPM (Other People's Money). They just need to a piece of paper to CYA (Cover Your Ass, in this sentence Cover Their Ass)

2) People who lost illegitimate money. The possibility of having to document the legitimate source for the money lost is way more frightening than the amount of money lost. Remember this is Bitcoin, something that the majority of people involved use for laundering, tax evasion, spouse evasion, run-of-the-mill fraud, etc.

3) Plain embarassement. The amounts lost may still be small enough that the financial loss is smaller than the dignity loss suffered when having to make a deposition about the circumstances of the loss.

Edit: Here's the very poignant advice from Gavin regaring (3):

If you "invest" in them then please lick your wounds quietly when they implode.