Tag Archives: coinlab

US-based Coinlab files lawsuit against MtGox

Press Room All things Bitcoin
CoinLab Files Breach-Of-Contract Suit Against Mt. Gox

SEATTLE (May 2, 2013) — CoinLab, the world’s first U.S. venture-backed Bitcoin company, today filed a complaint in the United States District Court for the Western District of Washington alleging breach of contract against Japan-based Mt. Gox, the world’s largest exchange for the digital currency Bitcoin.

“While it’s unfortunate that our agreement with Mt. Gox has not proceeded as planned, our hope is that we can quickly resolve the issues and clear a path to better serve our U.S. and Canadian customers,” said Peter Vessenes, CEO, CoinLab, Inc.

CoinLab and Mt. Gox entered into an agreement in November 2012 to provide Bitcoin purchase, sale and exchange services to customers in the U.S and Canada. As an established player in the North American Bitcoin industry—registered and fully compliant with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN)— CoinLab provided Mt. Gox with U.S. financial and investment partnerships necessary to drive more U.S. volume and pave the way for institutional investors and high net-worth individuals to buy and hold large amounts of the digital currency.

In return, under the agreement CoinLab would handle all of Mt. Gox’s North American transactions, providing enhanced product delivery, liquidity and customer service to the North American Bitcoin market.

However, Mt. Gox did not fulfill key terms of the agreement. Mt. Gox continued to market to North American customers and failed to provide CoinLab with account reconciliation data, service access and other information essential to fulfilling the terms of agreement, eventually attempting to ban all customers who had worked with CoinLab.

“We invested multiple staff years and significant resources into making this deal a success,” Vessenes said. “While it’s disappointing to file a lawsuit, we can rest assured that we tried every other avenue to resolve the issues outside of the courtroom.”

Vessenes continued: “My continued hope is that Mt. Gox will do what’s best for U.S. and Canadian customers and settle this matter quickly, allowing our customers to transact in the U.S. with a fully licensed and registered company that meets American standards for service quality. It’s most important to me that customers are able to maintain uninterrupted flow of services, and I hope that Mt. Gox shares that goal and works to resolve this dispute.”

CoinLab is represented by Edgar Sargent, Floyd Short and Lindsey Godfrey Eccles of Susman Godfrey LLP and Roger Townsend of Breskin, Johnson, Townsend PLLC.

CoinLab, headquartered in Seattle, is the world’s first U.S. venture-backed Bitcoin company. It was funded in April 2012 by a group of progressive investors including Tim Draper, Geoff Entress, Barry Silbert, Roger Ver and Joel Yarmon.

Coinlab Contact : Peter J. Vessenes, 855-LAB-COIN, peter@coinlab.com

Mt.Gox & Coinlab Announce Strategic Partnership to Bolster American Presence, Celebrate $1/2 Billion per Year in Annualized Trades

Seattle, Washington – February 28, 2013. Mt. Gox, the owner of the world’s dominant Bitcoin exchange, announced today that they have selected CoinLab as their exclusive partner in the United States and Canada. As of March 29, all US and Canadian customers currently transacting with Mt.Gox will transact through CoinLab, Inc.

“This move will bring local product delivery, liquidity and customer service to a huge group of Bitcoin fanatics,” said CEO of CoinLab, Peter Vessenes. “We’re excited by, and awed at the responsibility we have caring for our over 100,000 new customers and over a half-billion dollars in annualized trade volume.”

Mt.Gox will continue to provide back-end exchange clearing services, and transition over handling of customer accounts, deposits, withdrawals, and other functions to CoinLab’s US-based team.

“This should be a huge win for everyone — faster deposit and withdrawal times, easier-to-reach customer service, and better access for United States financial markets, market makers and liquidity providers” said Mark Karpeles, Managing Director of Mt. Gox.

CoinLabs plans for the customer base? “Service, Service, Service. Oh, and also, Liquidity, Liquidity, Liquidity,” said Vessenes. “Also, we’re planning on launching some pro trading tools; we have some samples up for comment and review ahead of launch at http://coinlab.com/liquidity.”

CoinLab is the world’s first US Venture-backed Bitcoin Company; it was funded in April 2012 by a group of progressive investors, including Tim Draper, Roger Ver, and Geoff Entress.

Mt.Gox Contact : press@mtgox.com

Coinlab Contact : Peter J. Vessenes, 855-LAB-COIN, peter@coinlab.com

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