A three-month-old company with ties to one of the biggest promoters of the
virtual currency bitcoin has filed for bankruptcy protection with less than
$50,000 in assets.Alydian Inc., a unit of CoinLab Inc., on Friday filed for
Chapter 11 protection in U.S. bankruptcy court in Seattle. The 10-page
court filing didn't disclose why Alydian filed for bankruptcy or how it
hopes to repay its debts.CoinLab is a bitcoin start-up run by Peter
Vessenes, who is also chairman of the Bitcoin Foundation. The foundation is
essentially a nonprofit trade group that has gained attention in recent
months for promoting bitcoin and supporting new rules aimed at making it
more accepted.CoinLab is one of the best-known names in the fledgling
virtual-currency industry, describing itself as a "bitcoin business
incubator." It has won credibility because it has attracted funding from
venture capitalists such as Silicon Valley's Draper Associates, which
pumped $500,000 into the company last year.Mr. Vessenes, who signed the
bankruptcy petition, couldn't be reached for comment. Alydian's bankruptcy
attorney also couldn't be reached. A spokeswoman for the Bitcoin Foundation
declined to comment.CoinLab announced the formation of Alydian in August,
touting it as "its newest portfolio company" that would develop
bitcoin-mining solutions for customers. "Mining" is the term used to
describe the computer-generated creation of the virtual currency. The
filing doesn't include Coinlab.Unlike dollars or euros that are backed by a
central bank, bitcoin users trade the currency on a number of exchanges or
swap it privately. Some merchants also accept bitcoin as payment for goods
and services.Bitcoin trading has been on a rollercoaster this year. The
currency nearly quintupled earlier this year, leaping from roughly $50 in
mid-March to $230 in April. It traded at about $100 in August, but was
fetching $237.50 in Monday trading on the Tokyo-based Mt.Gox
exchange.Federal and state regulators have been cracking down on bitcoin
transactions and pushing companies to follow comprehensive
anti-money-laundering requirements just like traditional money-transmission
businesses such as Western Union Co.CoinLab, which is based in Bainbridge
Island, Wash., has registered as a money-services business with the
Financial Crimes Enforcement Network, a unit of the Treasury
Department.Alydian said in court papers that it owes $600,000 to CoinLab
Inc. It also listed $3 million in debt to New Zealand's XRay Holdings LLC
and $40,000 in debt to Mr. Vessenes.The filing was made in the name of
Alydian affiliate CLI Holdings Inc
On Nov 4, 2013 7:39 PM, "Adam B. Levine" <adam@???> wrote:

> Paywalled - Summarize?
>
> Adam B. Levine
> Editor-in-Chief
> Let's Talk Bitcoin! <http://www.letstalkbitcoin.com>
> 1-855-WETALKBITCOIN Ex.700
> [image: Inline image 2]
> Talk to me on Gli.ph, my preferred communications platform
>
>
> On Mon, Nov 4, 2013 at 5:33 PM, Jason King <
> beinghomelessisnotacrime@???> wrote:
>
>>
>> http://m.us.wsj.com/articles/SB10001424052702303936904579178362553003276?mobile=y
>> On Nov 1, 2013 4:44 PM, "Amir Taaki" <genjix@???> wrote:
>>
>>> >>> about burning bridges - I hope the whole corrupt thing burns to the
>>> ground for the good of bitcoin. it was founded on bad principles and
>>> is institutionally compromised. reform will just keep the zombie
>>> living longer by allowing piecemeal adaptation.
>>>
>>> I don't trust the buddy buddy gang of business owners and developer
>>> friends to keep their personal politics out of bitcoin.
>>>
>>> I first started exploring the alternative path out of necessity to
>>> continue working on bitcoin. I don't fight against not because I could
>>> need something in the future and want to suck up, but simply because
>>> I've stopped caring. We have the power, we don't need them.
>>>
>>> if they want to demonstrate their genuineness though, the door is open
>>> if they want to keep office politics out.
>>> cooperation involves acknowledging our role as bitcoin developers and
>>> participating as equals.
>>>
>>> trust is the personal belief in correctness of something.
>>> it is the deep conviction of truth and rightness, and cannot be enforced.
>>> if you gain someone's trust, you have established an interpersonal
>>> relationship based on communication, shared values and experiences.
>>>
>>> TRUST always depends on mutuality.
>>>
>>> - --
>>> Abolish the NSA
>>> >>> _______________________________________________
>>> unSYSTEM mailing list: http://unsystem.net
>>> https://mailinglists.dyne.org/cgi-bin/mailman/listinfo/unsystem
>>>
>>
>> _______________________________________________
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>>
>
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>