Tuesday, May 7, 2013

CoinLab Files $75 Million Lawsuit Against Mt.Gox

CoinLab Files $75 Million Lawsuit Against MtGox - New Bitcoin World, Latest Bitcoin News, Free Bitcoins, ASIC Bitcoin Mining, Butterfly Labs ASIC
Last week, CoinLab, a US based startup that got attention last month for being the first venture funded Bitcoin firm, announced that they were suing Mt.Gox for $75 million due to breach of contact. The lawsuit stems back to a partnership that was agreed between the two firms in February. Under the terms of the deal, Mt.Gox, the world’s largest Bitcoin exchange, which accounts for over 70% of total daily volumes being conducted through its trading venue, had granted CoinLab as its exclusive partner in the US and Canada.

In its case against MtGox, CoinLab is claiming that the exchange failed to provide data in regards to existing clients. Additionally, they accuse Mt.Gox of continuing to market in the US and Canada, and failing to abide by their revenue share agreement; thereby breaching the partnership agreement between the two firms. According to CoinLab CEO, Peter Vessenes in his statement to clients, “what tipped us into filing the lawsuit was our complete inability to get MtGox 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.”

Under the agreement from February, beginning March 29th, the servicing of both existing and new US and Canadian account holders would be conducted by CoinLab; thus providing faster deposit and withdrawals and local support for this market. On its part, CoinLab agreed not to partner with any other sources of liquidity for two years. - Read more here: http://forexmagnates.com/coinlab-files-75-million-lawsuit-against-mtgox/

[ Related post ]:

Lawsuit halts US bitcoin exchange partnership (Mt. Gox, Coinlab)

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