Bitcoin, the virtual currency libertarian geeks expect us all to use to pay for pizza in the future, has had a rough few weeks. A series of booms and busts have sent shivers down the spines of Bitcoin enthusiasts. Now, Gawker has learned that a much-hailed partnership between two of the most prominent players in Bitcoin, Mt. Gox and CoinLab, has devolved into a nasty $75 million lawsuit, which appears to be by far the biggest Bitcoin-related lawsuit ever.
The two companies are in the business of Bitcoin exchange, which plays a central role in the Bitcoin economy. For all the hype surrounding Bitcoin's promise as the "future of currency," at present it's not really good for buying much. So all those Bitcoin millionaires must exchange Bitcoins for actual currency if they want to actually get any use out of it. The trades on the exchanges also set the closely-watched price of Bitcoin. (Currently hovering around $100.) Mt. Gox is the world's largest Bitcoin exchange. It handles about $6 million in trades a day, accounting for 76 percent of trades worldwide, according to The Verge. Coinlab is a relative newcomer to the Bitcoin game, but has received notice for attracting $500,000 in venture capital and partnering with Silicon Valley Bank.
Read more: Gawker
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