Wednesday, May 18, 2022

Mark Karpeles Begs CoinLab to Settle Lawsuit Against Mt. Gox

Mark Karpeles Begs CoinLab to Settle Lawsuit Against Mt. Gox

Mark Karpeles has made another rare public appearance. This time, the former Mt. Gox CEO has emerged pleading with CoinLab CEO Peter Vessenes to settle an ongoing lawsuit the company has against Gox.

Also read: Unconfirmed Bitcoin Transactions May Present New Opportunities for Fraud

An Open Letter to Peter Vessenes

Karpeles posted an open letter addressed to Vessenes on Reddit last week, calling the lawsuit a “farce” and accusing Vessenes of trying to take money from Mt. Gox creditors.

“I am writing today in hope to convince you to agree to settle this lawsuit for the 5 million USD which you owe to MtGox,” Karpeles wrote.

“This lawsuit today is not CoinLab vs. MtGox, but CoinLab vs. the MtGox customers, now creditors.”

The ex-CEO implored Vessenes to settle the lawsuit for the sake of Mt. Gox’s victims, if not for anything else:

“Not only did you take some 5 million USD from [creditors] in 2013 but today you are still trying to extract another 175 million USD on grounds which seems [sic] less than justified.”

CoinLab Lawsuit Against Mt. Gox

CoinLab initiated the lawsuit against Gox in May 2013, just two months after the companies entered a partnership in which CoinLab —  a digital currency services firm — would take over Gox’s North American operations.

According to Bitcoin Magazine, the deal between CoinLab and Mt. Gox was supposed to have CoinLab oversee Mt. Gox operations in the US and Canada, with North American revenue split between the companies.

CoinLab Mt. Gox

CoinLab would receive 40 percent of revenue from existing customers in North America, and 90 percent of revenue from new customers.

However, CoinLab quickly moved to sue Gox, saying the exchange had not held up their end of the deal after several weeks with no progress.

From the lawsuit:

“Mt. Gox has failed to cooperate in facilitating the timely and seamless transfer of CoinLab Customers to Coinlab since the Agreement took effect.”

The suit further stated, “[Mt. Gox] have breached their promises to provide necessary technology, software, and know-how to CoinLab.”

Mt. Gox Drama Continues

Four years later, the conflict has not reached a resolution, and CoinLab is still pursuing over $100 million from Mt. Gox.

In his letter, Karpeles requested that Vessenes end the drawn-out legal battle by accepting a settlement offer in which CoinLab would pay Mt. Gox $5 million. According to Karpeles, CoinLab received $5 million from Gox as part of their agreement, and CoinLab didn’t return the money once the deal was called off.

Bitsonline reached out to Vessenes for an official response to Karpeles’ open letter. He did not immediately respond.

You can read the open letter in full here.

Do you think CoinLab should settle the lawsuit? Share your thoughts down below. 

Images via Reuters, CoinLab 

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