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It's All About the Bitcoins

It's All About the Bitcoins

Class Action Suit Filed Against BitInstant for Allegedly Misrepresenting the Speed of Its Services

Mr. Shrem

BitInstant, the New York-based Bitcoin startup that promises to make it easier and faster to transfer Bitcoin funds, has been hit with a class action suit, according to CoinDesk.

In the suit, three BitInstant customers allege that the startup makes false claims about its services, including advertisements that say customers can obtain coins “within an hour or two,” and that they will be refunded if their transfers experience “undue delays.” The customers call these representations “disingenuous,” and are suing the company for relief for the company’s false representations of the speed of its service. Read More

It's All About the Bitcoins

New York Looks to Regulate Bitcoin, Issues Subpoenas to BitInstant, Coinbase and Others

Mr. Lawsky

Looks like the road to mainstream Bitcoin acceptance is paved with regulation.

The New York Department of Financial Services has issued subpoenas to a variety of New York-based Bitcoin enterprises, including Coinbase, Coinsetter and BitInstant, in an effort to collect more information about the booming virtual currency. This could lead to increased state regulation, as the department works to determine if Bitcoin companies should be regulated like other money-transmission companies, and/or be held to a separate set of standards. Read More

It's All About the Bitcoins

Warrant Reveals Homeland Security Seized Mt. Gox’s Dwolla Account for ‘Unlicensed Money Transmitting’

Mr. Karpeles (Photo: Twitter)

Yesterday the Department of Homeland Security shut down Bitcoin trading platform Mt. Gox’s ability to accept or send transfers using Dwolla, a mobile payment service. A representative from Dwolla told Betabeat that the DHS had sent them a “seizure warrant” for the account, but declined to provide further detail. Now, in the warrantobtained by Ars Technica, the reason for the seizure has been revealed: DHS believes Mt. Gox is operating an “unlicensed money transmitting business.” Read More

It's All About the Bitcoins

Department of Homeland Security Shuts Down Dwolla Payments to and From Mt. Gox

WHO MADE YOU?! (Photo: Silicon Angle)

Update: Warrant Reveals Homeland Security Seized Mt. Gox’s Dwolla Account for ‘Unlicensed Money Transmitting’

The Department of Homeland Security appears to have shut down the ability to use Dwolla, a mobile payment service, to withdraw and deposit money into Mt. Gox, a Bitcoin trading platform. A Dwolla representative confirmed the move to Betabeat. Chris Coyne, cofounder of OKCupid, posted a screenshot of an email he received from Dwolla, stating that due to recent orders from the Department of Homeland Security, Dwolla cannot complete the bank transfer to Mt. Gox. Read More

It's All About the Bitcoins

Union Square Ventures, Other Investors Pump $5M Into Bitcoin Startup Coinbase

For now, the identity of Bitcoin's creator is still unconfirmed. (Photo: Flickr/Zach Copley)

Fred Wilson has just broken his two-year, no-investment streak. The Wall Street Journal reports Union Square Ventures is leading a $5 million round in Y Combinator-backed Coinbase, which allows you to buy, store and pay with Bitcoin. Also participating: Ribbit Capital, SV Angel and Funders Club.

These being the self-styled gentleman scholars of USV, there’s some philosophizing to justify Read More