Court Orders CoinLab to Pay BitInvestment

Jayanand Sagar | November 7, 2013 | 10:13 pm

Court Orders CoinLab to Pay BitInvestment

Jayanand Sagar | November 7, 2013 | 10:13 pm

Bitinvestment and CoinLabBitcoin business incubator CoinLab has been ordered by a court in New York to pay BitInvestment LLC in bitcoin on the grounds of breach of contract. In a lawsuit file last week, BitInvestment alleged that CoinLab failed to come through with approximately 8,000 BTC in an arrangement made in August.

Judge Robert W. Sweet demanded CoinLab not transmit bitcoin to any other parties except BitInvestment, until their financial obligation under the agreement was met.

CoinLab head honcho Peter Vessenes said, “of course we will comply (with the judge’s order) as well as we’re able,” in an email to the Wall Street Journal.

The lawsuit is, in part, responsible for the demise of CoinLab-owned Alydian, which filed for Chapter 11 bankruptcy recently.

[via Wall Street Journal]

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