CoinLab suing MtGox for $75 milliion?

[Herodes]

What do you guys make of this ?

http://coinlab.com/status

Is it professional ?


Here's an excerpt:

Bitcoiners have, on average, lost more money due to technology difficulties, frozen / lost banking relationships and shady characters like pirateat40 than due to any part of Bitcoin's fundamental economics. I hate this fact, passionately. I have a vision in which high quality service and technology and ethics can be delivered to you, me, my kids, everyone who has a stake in Bitcoin.

It is my goal for CoinLab that we provide fundamental infrastructure to minimize these risks for everyone in our space, and I do mean everyone; from those on the Bitcoin Forums who dislike and distrust me personally, to the mom and pop cupcake makers in San Francisco, to my daughter who recently sold some knit products for .01BTC.

 

[Inedible]

Mt. Gox and CoinLab's shared trade execution system averages 80% of daily global Bitcoin liquidity.

I wonder what fraction of that percentage is CoinLab's?

[repentance]

Not to mention dropping this little bomb just before a long weekend in Japan.

Wankers... All of them.

What's the significance of the long weekend?

No MtGox support staff there to approve wire transfers or large withdrawals.

[Minor Miner]

What do you guys make of this ?

http://coinlab.com/status

Is it professional ?


Here's an excerpt:

Bitcoiners have, on average, lost more money due to technology difficulties, frozen / lost banking relationships and shady characters like pirateat40 than due to any part of Bitcoin's fundamental economics. I hate this fact, passionately. I have a vision in which high quality service and technology and ethics can be delivered to you, me, my kids, everyone who has a stake in Bitcoin.

It is my goal for CoinLab that we provide fundamental infrastructure to minimize these risks for everyone in our space, and I do mean everyone; from those on the Bitcoin Forums who dislike and distrust me personally, to the mom and pop cupcake makers in San Francisco, to my daughter who recently sold some knit products for .01BTC.

 

Need to get rid of this calvin and hobbes type of backyard clubhouse behavior.   grow up.   deal with the real world.  this is not some video game world that you are playing in.   If coinlab is credible and wants to be seen as credible, go down to palo alto and get 20MM of funding and play like an adult.

[jcpham]

What do you guys make of this ?

http://coinlab.com/status

Is it professional ?


Here's an excerpt:

Bitcoiners have, on average, lost more money due to technology difficulties, frozen / lost banking relationships and shady characters like pirateat40 than due to any part of Bitcoin's fundamental economics. I hate this fact, passionately. I have a vision in which high quality service and technology and ethics can be delivered to you, me, my kids, everyone who has a stake in Bitcoin.

It is my goal for CoinLab that we provide fundamental infrastructure to minimize these risks for everyone in our space, and I do mean everyone; from those on the Bitcoin Forums who dislike and distrust me personally, to the mom and pop cupcake makers in San Francisco, to my daughter who recently sold some knit products for .01BTC.

 

i spot the same personal cues you are hinting at. also the pirateat40 reference is a fracking internet handle, so i got real turned off at that point in terms of quality of release. i don't really care much for coinlab as a business entity.

edit: those are all non-professional opinions i'm new here.

[Inedible]

i spot the same personal cues you are hinting at. also the pirateat40 reference is a fracking internet handle, so i got real turned off at that point in terms of quality of release. i don't really care much for coinlab as a business entity.

Is this not appealing to our humanity? A little bit of humility doesn't hurt, does it?

Edit: Granted, it doesn't speak of high business.

[empoweoqwj]

Just make sure this is a true story before spreading it everywhere.

Yesterday we had false story of MtGox being raided by police. Today MtGox being sued for $75m.

It might well be true, but please someone contact CoinLab first to verify.

CoinLab have already said they haven't been served yet.

CoinLab are the people serving the writ. Its MtGox that said they haven't been served yet.

That's what I said 

No you didn't. You said "CoinLab have already said they haven't been served yet". The people doing the suing don't get served anything.

[Inedible]

That's what I said 

No you didn't. You said "CoinLab have already said they haven't been served yet". The people doing the suing don't get served anything.

 

Gosh, if only I'd removed the evidence to the contrary! 

[empoweoqwj]

Just proves the bitcoin "business community" is still full of school children instead of business people. Take the bitcoinATM example yesterday.

Bring on the day when real business people start exchanges up. Then bitcoins will show their reveal value. Until then, expect squabbling kids to cause major crashes and pick up some cheap bitcoins.

[Inedible]

no i do not feel sorry for coinlab. i predict they fail and fail hard.

Some history there?

[Nolo]

Forgive me if it's posted somewhere in this thread.  But has the complaint been posted online yet?  I'm anxious to read it.  

Just saw it.  Nevermind. 

[Inedible]

Forgive me if it's posted somewhere in this thread.  But has the complaint been posted online yet?  I'm anxious to read it.  

Yep.

If you can manage to make it all the way through the first post, it's on the page that the link goes to.


Edited: For clairty

[repentance]

What is the worst case scenario for Bitcoin, Bitcoin users and MtGox clients?

When will the court proceeding realistaically take place? Will there be asset freeze? Etc?

Bitcoinica lawsuit still hasn't gone to trial so no time soon.

Nobody's lawyer is going to be advising them to actually take this to trial.  There'll be lots of negotiations back and forth in an attempt to reach a settlement.

This is sure going to make the Future of Payments conference interesting...

[cbeast]

Why would anyone trust Mt Gox in any business relationship after this?

[Inedible]

Why would anyone trust Mt Gox in any business relationship after this?

Because they control a very large, tasty pie and greed will convince them too.

[Minor Miner]

What is the worst case scenario for Bitcoin, Bitcoin users and MtGox clients?
When will the court proceeding realistaically take place? Will there be asset freeze? Etc?

Bitcoinica lawsuit still hasn't gone to trial so no time soon.
Nobody's lawyer is going to be advising them to actually take this to trial.  There'll be lots of negotiations back and forth in an attempt to reach a settlement.
This is sure going to make the Future of Payments conference interesting...

Most lawyers suggest that you only spend as much on fees as you can credible get back from the party you are suing.  No pockets = little sense in suing.   On this issue, do you really think some federal judge will consider than anyone could lose $75MM on a $500k investment?

[Nolo]

First thing I notice:  There's a big typo in this complaint.  

I guarantee the drafting attorney meant to write in Paragraph 3: "This is an action for damages in excess of $75,000.00 excluding interest, attorneys’ fees and costs."

Instead the complaint says "$75,000,000.00".

The federal diversity statute 28 U.S.C. § 1332 requires the complaint to be in excess of $75,000.  I have never seen any federal complaint when any number other than $75,000 is written in this paragraph.

So the $75 million number that is being thrown around is quite simply wrong.  

I'll continue reading the complaint now.  That's as far as I got before I noticed that.  

Edit:  In fact, there is a liquidated damages provision in this contract.  So the MOST under any circumstances they could get would be $50 million.  I'll have to lookup WA state common law on liquidated damages though to determine how the court will analyze this provision.

[Herodes]

I'm tempted to say, I told you so, but at least it seems that my reservations (or rather questions) towards Vess were warranted.

Here's an old thread that could be relevant:
https://bitcointalk.org/index.php?topic=148147.0;all


I don't know what Coinlab is trying to achive by suing MtGox like this. First off, if they intend to do business on the US/Canadian market, they need to have trust in their userbase. Knowing about all the scammy operations in Bitcoin-land, any new player must be super careful to build confidence in the community and with customers. You don't build confidence by suing the largest Bitcoin exchange for 75million dollars. I don't know how hard they've tried to get MtGox to cooperate, as we all know it can be slow getting MtGox do do anything, as they're swamped with requests. But I would think Coinlab has more effective channels of communication than the usual customer service channel.

Also - if Coinlab want MtGox to cooperate, then suing them won't make them much more cooperative I would think. So it seems to me that Coinlab is burning bridges and attempting a very opportunistic lawsuit. I also read in the lawsuit that Bitcoin is the most successfull kind of digital money. As Bitcoin has less market share than Paypal for instance, I don't think that's an accurate statement.

I'm looking forward to a statement from Mark Karpeles regarding all of this.

Edit: Someone else in this thread claims it must be an error in the court document, and that it's not 75 million dollars but 75 thousand dollars. That's quite a difference..

[Inedible]

Looks as if Peter has thought better of his press release and edited out the less professional elements.

Did anyone save a copy of the original?


Ooops! Looks like I was reading the wrong page.

[nebulus]

Business Plan

1. Receive 500k
2. Sue MtGox
3. Profit

American Dream...