Coinlab RATS Gox out to the feds

[gmaxwell]

I'm going to lean toward trusting Coinlab on this one.

Did I miss coinlab saying that they didn't ask for customs intervention here?

[smoothie]

I think the seizure was initiated by coinlab. Too much coincidence to not be.

[indio007]

Not incredibly difficult to figure out: Mutum Sigilum has been used to funnel Dwolla in and out of Japan for years now. Isn't it convinient that just a few weeks (or maybe not even a week?) from Coinlab lawsuit GOX gets this?

Coinlab agreement was precisely to handle US customers under a more legit frame. How convenient the Feds do this just now!

People will say I am a crazy conspiracy theorist. Think what you will. There is a smoking gun and it points out to Coinlab.

DISCLAIMER: I could give two shits about GOX, and CoinLab. I don't like either. What sucks is that this is going to put a serious dent on Bitcoin after these news are digested fully.

Welcome to the US. Get the "authorities" to do what you can't do in the marketplace.
The judicial system has become a weapon.

It reminds of The Law by Bastiat.

Victims of Lawful Plunder
Men naturally rebel against the injustice of which they are victims. Thus, when plunder is organized by law for the profit of those who make the law, all the plundered classes try somehow to enter — by peaceful or revolutionary means — into the making of laws. According to their degree of enlightenment, these plundered classes may propose one of two entirely different purposes when they attempt to attain political power: Either they may wish to stop lawful plunder, or they may wish to share in it.

[axus]

There was also a lawsuit from Think Computer Corporation in California against lots of "Money Transmitters", for "unfair competition" of not getting appropriate licenses.  There were a bunch of others named including Mt. Gox.

[Luckybit]

Both sit on the Bitcoin Foundation Board, the CEO of Coinlab is the Director of the board.

Now, for those that don't see these things often, it isn't a big deal. Board members from various organisations often go at it like this, its better than pulling out a gun

They both want the best for bitcoin, and its a 'contract issue', at the most, it will bring a lot of attention to bitcoin, especially because coinlab have hired lawyers from one of the top US law firms. But basically, it looks like a 'shaking fist' moment, and will probably get sorted out of court.

If you look at the details you can't blame coinlab for getting fed-up waiting whilst losing a lot of business, and then on the other side mtgox was suffering from lots of ddos attacks and massive influx of new bitcoiners whilst trying to sort their shizzle out with coinlab.

And though they both sit on the board, it doesn't effect the Bitcoin Foundation. Coinlab vs MtGox is a contract issue, the Foundation only has Bitcoin at heart.

And let's be honest, a bunch of lawyers and the attention Bitcoin gets from this is along the lines of "Whats all that fuss about? What is worth a $75 million lawsuit?" (which was a typo apparently, but don't quote me on that, not 100% sure) "What has got the attention of one of the US's biggest/best law firms?" .. "What is this Bitcoin?"

Thanks

Bitcoin needs (price of Bitcoin up 1000%.)

Certainly not

There is no better news for the media and for the mainstream population than to hear that Bitcoin is rising 1000% and making people rich. All the news about it being the underground drug hacker libertarian currency do not help it. A lot of old people still support the war on drugs and don't care about liberty in economics.

[repentance]

Not true.  The DHS started the investigation last year - long before the merger was discussed.

We know from what people posted after talking to the SEC about pirate that the SEC was asking questions about MtGox.  We also know that the email sent by the SEC said that information given to them could be shared with other agencies (which is pretty standard if there's a more appropriate agency to follow something up). 

It's highly possible that there were multiple different things which put MtGox on the government radar, but it's unlikely that a recent complaint by a competitor would have resulted in such quick action.

[BCB]

Not true.  The DHS started the investigation last year - long before the merger was discussed.

We know from what people posted after talking to the SEC about pirate that the SEC was asking questions about MtGox.  We also know that the email sent by the SEC said that information given to them could be shared with other agencies (which is pretty standard if there's a more appropriate agency to follow something up). 

It's highly possible that there were multiple different things which put MtGox on the government radar, but it's unlikely that a recent complaint by a competitor would have resulted in such quick action.

Unless that complaint by a competitor included confidential information received as part of Coinlabs due dilligence before taking of the gox US/CA customer accounts.