Bitcoin Exchange Facing $75 Million Suit

Partnership between Mt. Gox and CoinLab didn't work out


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.