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Mt Gox hit with $75 million suit over failed partnership
In February, we reported on a major deal between Mt. Gox, the Japanese firm that runs the world's largest Bitcoin exchange, and the American startup CoinLab. Under the terms of the agreement, CoinLab would take charge of Mt. Gox's operations in the United States and Canada. CoinLab promised that its connections to American banks and investors would allow it to provide a superior customer experience.
But that partnership has collapsed with a lawsuit first reported by Gawker. CoinLab sued Mt. Gox on Thursday, charging that the Japanese firm failed to live up to its side of the contract that the two firms signed in November. Under the terms of the contract, Mt. Gox was supposed to hand off its North American operations to CoinLab in March.
But CoinLab says that that didn't happen. "Mt. Gox has continued to market to customers in North America and has accepted business from customers there," CoinLab's lawsuit, filed in Washington State on Thursday, says. "Mt. Gox has also failed to provide CoinLab with account reconciliation data, server access, and other information promised in the agreement that is essential for CoinLab to market exchange services and service its customers as contemplated in the agreement."