03 May '13, 4am

Bitcoin exchange partnership dissolves with lawsuit

A Bitcoin exchange partnership designed to smooth the trading process and show the security of the virtual currency has apparently collapsed with a lawsuit. After struggling to crack the U.S. market, Mt. Gox, the world's largest Bitcoin exchange, announced in February that it had reached an arrangement with CoinLab in which the Seattle-based startup would manage the exchange's operations in the U.S. and Canada . Along with the support of Silicon Valley Bank and $500,000 in VC funding, it was hoped that the arrangement would help increase customer confidence in the decentralized digital currency. However, that transfer of operations never occurred, according to a lawsuit CoinLab filed against the Tokyo-based exchange on Thursday in the U.S. District Court for Western Washington. The lawsuit (see below) alleges multiple counts of breach of contract and claims CoinLab suffere...

Full article: http://news.cnet.com/8301-1023_3-57582688-93/bitcoin-exch...

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