Mt.Gox may be sued for $16 billion by CoinLab

03 Feb, 2019
by David Robb
News
Mt.Gox may be sued for $16 billion by CoinLab

A lawsuit brought against Mt.Gox by crypto business incubator CoinLab may now be asking for a considerably larger sum. A photo of the filing document posted on Reddit suggests that the failed exchange is being sued for 1.7 trillion JPY ($16 billion), as reported by CoinTelegraph.

CoinLab first initiated proceedings against Mt.Gox back in 2013, suing them for breach of a contract which stipulated that it would be taking over Mt.Gox's American operations. The collapse of the exchange meant that this was never able to go ahead. 

The sum was previously reported as being around $75 million, which was criticised at the time as being excessive, as CoinLab had contributed very little to Mt.Gox and may even have owed it in excess of $5 million.

If this new information is accurate, the lawsuit has now increased by over 200 times. With the other civil rehabilitation proceedings by retail traders against Mt.Gox finally starting to be processed, it could now be the case that these will be delayed due to the size of the settlement CoinLab is asking for. Some have suggested this may even have been the reason for CoinLab increasing the size of the lawsuit.

Read more: Mt. Gox trustee AKA 'Tokyo’s Bitcoin Whale' extends deadline to December 26

Mt.Gox may now have been implicated in the recent scandal involving QuadrigaCX. Investigations have found that there may be some kind of a relationship between the two exchanges, due to their sharing some cluster wallet addresses.

Read more: Quadriga: Twitter user finds the exchange liquidated $12.7 million BTCWhat we know about the Quadriga story so far

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