

Coinlab (Y Combinator funded) sues MtGox - dcc1
http://www.reddit.com/r/Bitcoin/comments/1dl6uz/coinlab_sues_mtgox/
Coinlab (Ycombinator funded) sues MtGox
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ewoodrich
My understanding is that Coinlab (in the best case) was only able to handle a
very limited number of number of daily transactions. This was presumably due
to a combination of liability and supply issues that would prevent them from
being a general supply for BTC until they had reached the sufficient "critical
mass".

I'm surprised Mt. Gox would enter into such an ambitious relationship without
exploring the negative signals (limited exchange capacity, very much unproven
market record, limited userbase). IANAL, so I can't weight the evidence of the
lawsuit sufficiently, but if the terms were that explicit (with no escape
clauses or relevant conditions), then Mt. Gox has demonstrated they have very
little institutional stability. In many ways, it seem more likely that Coinlab
is very much vulnerable to such an attack, but that is purely speculation.
Technical infrastructure for an exchange is obviously essential -- but the
business and legal framework for a system that is inextricably connected with
currency should be demonstrably stable. I am curious to see how the facts are
revealed.

