CoinLab suing MtGox for $75 milliion?

[Herodes]

Incorporated in Delaware who charges no income tax on corporations not operating within the state, suing MtGox for 75000000$, surely Coinlab has the well being of the Bitcoin community as their number one priority and money doesn't matter to them.

[dmus]

I understand why the first instinct is "price will crash sell now"... but if people are worried about Mt.Gox losing this lawsuit, wouldn't they buy and withdraw bitcoins instead of sending Mt.Gox more bitcoins and/or leaving their fiat potentially trapped?

[Inedible]

Incorporated in Delaware who charges no income tax on corporations not operating within the state, suing MtGox for 75000000$, surely Coinlab has the well being of the Bitcoin community as their number one priority and money doesn't matter to them.

That's an interesting way of looking at it.

[Loozik]

I believe that running the bicoin exchange of the size of that of MtGox is a profitable business now and should be even more profitable in the future.

Why would MtGox sell the operations generated on North American clients so cheaply (the revshare described in point 4)? - 60% on current customers and 10% on new ones while they could very well enjoy 100% of old and new ones by running the operations by themselves?

[justusranvier]

From: http://coinlab.com/status

When we spun up our initial alpha customers, they included companies that from one perspective could reasonably be deemed to be our competitors, some of the best companies in our space. We worked extremely hard to provide them great service, because I want to build our ecosystem; I want a robust economy and a broad base of service and product for everyone.

What tipped us into filing was our complete inability to get Mt. Gox to deliver on the few simple things left that were needed for customers to move over en-masse; we were often left just apologizing to our alpha customers while their own businesses suffered. I'm just not willing to put any of our customers in that position -- if we can't do a good job for you, I won't promise that we can.

That sounds to me like the competitor/customer he's talking about Coinbase, the amazingly convienient way to buy bitcoins that you can never use because they're always sold out.

[myrkul]

I understand why the first instinct is "price will crash sell now"... but if people are worried about Mt.Gox losing this lawsuit, wouldn't they buy and withdraw bitcoins instead of sending Mt.Gox more bitcoins and/or leaving their fiat potentially trapped?

So much this. Buy, withdraw, and rest assured that you can sell later and not have your money frozen as part of the settlement.

[vampire]

I can see that Coinlab was supposed to pay to MtGox for transfer, here is a scenario:

MtGox to Coinlab: It will take 5 million dollars to develop a solution to transfer all customers safely
Coinlab: WTF
MtGox: Read the contract
Coinal: I'll sue you for 75 millions

[Inedible]

At least the folk worried that they could never get in for less than $100 can fill their boots.

[fnordfnordfnord]

It's in PACER now.

http://ia601700.us.archive.org/8/items/gov.uscourts.wawd.192566/gov.uscourts.wawd.192566.docket.html

http://ia601700.us.archive.org/8/items/gov.uscourts.wawd.192566/gov.uscourts.wawd.192566.1.1.pdf

[repentance]

I believe that running the bicoin exchange of the size of that of MtGox is a profitable business now and should be even more profitable in the future.

Why would MtGox sell the operations generated on North American clients so cheaply (the revshare described in point 4)? - 60% on current customers and 10% on new ones while they could very well enjoy 100% of old and new ones by running the operations by themselves?

Just recently requirements that foreign financial service providers report the investments of US citizens to the IRS and collect tax for the IRS were implemented.  Japan is one the the nations implementing this.  Major foreign banks and trading firms have been dumping US customers for a while now.  An agreement like this one would allow MtGox to evade that requirement while still profiting from a US customer base.

[BTC Books]

From: http://coinlab.com/status

When we spun up our initial alpha customers, they included companies that from one perspective could reasonably be deemed to be our competitors, some of the best companies in our space. We worked extremely hard to provide them great service, because I want to build our ecosystem; I want a robust economy and a broad base of service and product for everyone.

What tipped us into filing was our complete inability to get Mt. Gox to deliver on the few simple things left that were needed for customers to move over en-masse; we were often left just apologizing to our alpha customers while their own businesses suffered. I'm just not willing to put any of our customers in that position -- if we can't do a good job for you, I won't promise that we can.

That sounds to me like the competitor/customer he's talking about Coinbase, the amazingly convienient way to buy bitcoins that you can never use because they're always sold out.

Yeah, dammit.  Coinbase would be amazing, if they ever had bitcoin.  Better than an exchange, actually:  keep bitcoin at Coinbase and fiat in your bank.  As long as you have some personal liquidity it's much more secure that way.

[Koekiemonster]

I understand why the first instinct is "price will crash sell now"... but if people are worried about Mt.Gox losing this lawsuit, wouldn't they buy and withdraw bitcoins instead of sending Mt.Gox more bitcoins and/or leaving their fiat potentially trapped?

Thought of this as well. Still unlikely though. Curious to see as what will happen.

[Piper67]

Incorporated in Delaware who charges no income tax on corporations not operating within the state, suing MtGox for 75000000$, surely Coinlab has the well being of the Bitcoin community as their number one priority and money doesn't matter to them.

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

Wankers... All of them.

[Inedible]

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?

[Piper67]

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?

Banks closed in Japan till Tuesday. The BTC to fiat flow just became a one-way street. It's almost like they're trying to destroy Bitcoin, on purpose.

[Loozik]

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?

[Piper67]

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?

I doubt this will ever even make it before a judge. If it does ever go to trial, it would be many months till a decision came down. But this is mainly about the optics, really.

[deepceleron]

MtGox: we determined it was a bad idea to go through with giving this shady looking individual the banking credentials and passwords of non-consenting users, especially since he got into the scamcoin business.

Me: Hey coinlab, where can I serve you notice? Me and 1000 others will get default judgements against your "company" in every state of the union, even before your lawsuit with MtGox is dismissed in summary judgement.

[FreddyFender]

MtGox: we determined it was a bad idea to go through with giving this shady looking individual the banking credentials and passwords of non-consenting users, especially since he got into the scamcoin business.

Me: Hey coinlab, where can I serve you notice? Me and 1000 others will get default judgements against your "company" in every state of the union, even before your lawsuit with MtGox is dismissed in summary judgement.

You would be the wrong group to have on your/anyone's badside.

[Minor Miner]

There's a link to the court documents in the Gawker article.
http://www.scribd.com/doc/139160091/Coinlab-v-Mt-Gox

Trouble with that document is it's hard to verify it's authenticity.

Do you think it is credible to cite a $75MM loss on a $500k investment?   hmmmm.
what a joke these people are.   need some grown ups.