MTGOX sued by COINLAB for $75 million

[TECSHARE]

This is a bait and switch mixed with a smash and grab. MTGOX was tricked into signing a contract that puts itself, the Bitcoin chain, and its exchange users at risk. Mark my works Coinlab is a defacto entity of regulatory authorities of which its purpose is multifold:

1. Force all North American users to comply with FinCen regulations (and by extension global users).
2. Collect Bitcoin user data globally.
3. Crush the largest operating exchange financially.
4. Displace it with a traditionally controlled corporate central entity.
5. Crush and or subvert the cryptocurrency.

http://www.scribd.com/doc/139196333/Coinlab-v-Mt-Gox
http://coinlab.com/status
https://mtgox.com/pdf/20130503_coinlab_lawsuit.pdf

I suggest a boycott of Coinlab's services until the suit is dropped. I know no one likes MTGOX but right now Bitcoin users depend upon it for liquidity. The economy needs more time to grow before it can tolerate the loss of the largest central exchange.

[RandyFolds]

That is all sorts of fucked. Tsk tsk, coinlab...and that's coming from a man that despises gox. Court is for pussies. If they were real men, they'd challenge them to a game of Magic.

Seriously though...terrifying. It's only gonna take one overzealous judge to put us all in rebel territory.

[uMMcQxCWELNzkt]

That is all sorts of fucked. Tsk tsk, coinlab...and that's coming from a man that despises gox. Court is for pussies. If they were real men, they'd challenge them to a game of Magic.

Seriously though...terrifying. It's only gonna take one overzealous judge to put us all in rebel*terrorist* territory.

[MonadTran]

I suggest a boycott of Coinlab's services until the suit is dropped.

Right. Going to avoid anything even remotely connected to Coinlab, from now on. If / when the suit is dropped, too.

[Zaih]

This is not good..

Good luck to both. Interested to see how this turns out.

[palmcoins]

I think they will settle nicely and quickly to avoid disruption to the BitCoin value. It's in both companies interest.

[inge]

I think they will settle nicely and quickly to avoid disruption to the BitCoin value. It's in both companies interest.

I hoop you are right. This isn't good for Bitcoins

[dotcom]

never heard of coinlab

[TECSHARE]

With the recent DHS attack on Dwolla is everyone starting to see the big picture now? The timing was not accidental.

[Toolhead]

TECSHARE, could you please explain what do you mean?

I´m from Germany, so it`s hard to understand for me, what these lawsuits are about, because judiciary english isn´t my specialty 

I´m scared, that something bad happens to BTC...

Thank you!

[TECSHARE]

TECSHARE, could you please explain what do you mean?

I´m from Germany, so it`s hard to understand for me, what these lawsuits are about, because judiciary english isn´t my specialty 

I´m scared, that something bad happens to BTC...

Thank you!

The global banking system is largely dependent on the US dollar currently, as a result most financial transactions are thru US banks and therefore regulated under US jurisdiction. Exchanging Bitcoins (a deflationary currency), for USD (an inflationary fiat currency) threatens the banking system's monopoly over their fractional reserve lending scam and makes it more difficult for them to acquire actual capital. A good way to look at is is for every dollar spent on a Bitcoin, they can now loan out $9 less because they have a 1:9 lending ratio limit. Therefore it is in the banking system's best interests to either control or destroy Bitcoin and or cryptocurrency as a whole.

One tactic the government often uses when it can not destroy a movement by force, is subversion via infiltration. In this case they got MtGox to sign a pigeonhole contract giving them jurisdiction explicitly over their trade in the US and North America. IMO their next step will be an attempt to steal market share while MtGox fumbles, then promoting Coinbase while regulations are selectively enforced only on MtGox. If they can attain a large proportion of Bitcoin market share they can then manipulate prices and or collect massive databases of information about Bitcoin users for further inspection (read fishing expedition for dissidents). If you look into where the funding for Coinbase came from you will find it quite telling as well.

IMO Bitcoin will survive, and crypto will never die as long as humans live. I am not packing my bags yet.

[RoadToHell]

A good way to look at is is for every dollar spent on a Bitcoin, they can now loan out $9 less because they have a 1:9 lending ratio limit. Therefore it is in the banking system's best interests to either control or destroy Bitcoin and or cryptocurrency as a whole.

What does this have to do with it?  If global citizen A buys a dollar's worth of bitcoin from global citizen B, the number of dollars in the world hasn't changed.  Your statement here would only be true if it were a member of the global banking system that was purchasing bitcoins from a non member.

[RandyFolds]

A good way to look at is is for every dollar spent on a Bitcoin, they can now loan out $9 less because they have a 1:9 lending ratio limit. Therefore it is in the banking system's best interests to either control or destroy Bitcoin and or cryptocurrency as a whole.

What does this have to do with it?  If global citizen A buys a dollar's worth of bitcoin from global citizen B, the number of dollars in the world hasn't changed.  Your statement here would only be true if it were a member of the global banking system that was purchasing bitcoins from a non member.

It subverts value from the carrier the fed controls to the carrier they don't. It cuts the immediate puppet strings they're wielding, though they can still elicit control by more circuitous means, as tecshare points out. It's still a wrench in their works, and the hammer has begun to fall...bam, double tool metaphor.

[TECSHARE]

Exacly... Every time somone stores value or makes a transaction in a form other than US FRNs it decreases not only the total capital available for trade in FRNs, it removes a further 9 times more fractional reserve notes from being introduced into circulation further reducing liquidity.

[TECSHARE]

1) Coinlab suit on MtGox for $75 million
2)Dwolla bank account seizures for MtGox by DHS
3)Liberty Reserve shut down
4) OKPay stops Bitcoin deposits

The narrative is very clear. The USA banking system is hostile to Bitcoin. They claim it is to stop money laundering, but the courts have caught the banking system laundering BILLIONS in illicit funds red handed, yet they still only pay a small fraction of profits and promise not to do it again. When a Bitcoin exchange does it, it is destroyed.

[RandyFolds]

Shit certainly does appear to be hitting the fan.

Perhaps its time I begin establishing some squatter's rights on a nice plot of land in the swamp...granted it's the swamp and it's going under ten feet of water every year, but hey, free land for improving the property with a plywood shack and a nice little curtained off shitter into the canal. Fuck yeah, i've been here ten years and improved the property, taxman. See them gator, gar and catfish skulls lined up on those poles? They's mine! So is the doll with the burned hair and missing eye sitting in the rocking chair. Squeal like a pig, you sumbitch!

[AsicBite]

Hm, is this connected to yesterdays 20K BTC sell ?

[Lohoris]

1) Coinlab suit on MtGox for $75 million
2)Dwolla bank account seizures for MtGox by DHS
3)Liberty Reserve shut down
4) OKPay stops Bitcoin deposits

The narrative is very clear. The USA banking system is hostile to Bitcoin.

Wrong.

They are apparently hostile to whoever doesn't follow some kind of regulation, created to prevent money laundering and stuff.

I'll start getting worried when they actually do something that goes beyond that.

[EskimoBob]

Your biggest threat to bitcoin is probably China, where all those ASIC's are made. You know how they like to copy every fkn thing that's worth something?
I bet those ASIC "blueprints" are already copied and production is at full speed. All we need now is some some lunatic over at [country] to build a mining farm and it's adios BTC as we know it. Or maybe your friendly greedy banker wankers are the ones who ordered a boat load of chips to wipe this slate clean once more, so they can rob you for another 100 years

But I agree, fuck coinlab and everyone who is involved with those greedy scumbags.

[Crindon]

A decentralized exchange for a decentralized currency?