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Coinlab vs. Mt. Gox: the biggest Bitcoin lawsuit ever

After some rough weeks in the recent past, Bitcoin keeps having some problems. This time, a well-known partnership between two Bitcoin protagonists – Mt. Gox and CoinLab – has soured and turned into a surprising $75 million lawsuit. It’s, apparently, the biggest lawsuit related with digital currency ever.

Both companies work in the Bitcoin exchange field, playing a central role in the decentralized virtual economy. Mt. Gox is, actually, the world’s biggest website that works with the Bitcoin exchange. The company handles an average $6 million in trades per day, a value that stands for 76 percent of worldwide trades. On the other side, Coinlab is a newbie in the Bitcoin business that’s attracting everyone’s attention.

The partnership between the two websites began in February and Coinlab was supposed to handle Mt. Gox’s North-American services, since they are a Japanese company.

At least, that was the plan… But, now, according to a federal lawsuit filed by Coinlab’s attorneys in Washington state, the company alleges that Mt. Gox has breached one of the contract clauses. The one that was supposed to give Coinlab “exclusive access” to the North-American customers.

Coinlab also makes another accusation, saying that Mt. Gox hasn’t allowed them to transition the North-American and Canadian clients from Mt. Gox to Coinlab, as agreed previously. Apparently, Mt. Gox “has failed to deliver all passwords, Yubikeys, administrative logins and any other security information required so that CoinLab may assume operation of the Bitcoin exchange services for customers in the United States and Canada”, states the lawsuit.

Now, Coinlab demands $75 million in damages. And they say this value won’t even cover all their losses.


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