Tradehill is making second attempt to revive itself, aiming at making money off Bitcoin. The renowned, second largest exchange for experimental virtual currency Bitcoin had to close down due to a protracted regulatory dispute and a string of payments fraud charges.

As a part of this attempt, Tradehill is ready for a re-launch with a new team and a design reboot. The new site will go live today with a new business-focused product dubbed “Prime.” The new team, based in San Francisco, has raised a small seed round of funding from angel investors and expects to close a first round of about $300,000 in the coming few months.

“We want to be the grownups in the Bitcoin space,” said chief operating officer Ryan Singer in an interview. “Our goal is to be the institution that other institutions turn to when they have needs related to digital currencies.”

As we know, Bitcoin is a favorite of the libertarian and hipster crowd, including the speculated criminal-element. It allows for complete anonymity and privacy, and once a transaction is completed, there is no central server with information that a government agency could subpoena. This is the reason that the FBI fears the anonymous payment network (so, Bitcoin) is a haven for money laundering and other criminal activity.

Despite several fluctuations in the value of Bitcoin, Tradehill’s founders are convinced their first product will be a hit with business and accredited investors who need a better way to engage with the digital economy. As it is difficult to manage online transactions and exchanging digital wealth for hard cash, Tradehill is trying to tap the opportunity. Even considering the recent problems, The Tradehill team is confident it can deal with any potential problems that may arise.

“We have more lawyers than engineers,” said Singer, who stressed that the new Tradehill will be fully compliant. Likewise, the site’s defenses are up. To avoid being hacked, the founders recruited a chief technology officer from Google’s privacy unit.

Last year, Bitcoin lost the payment network Paxum and TradeHill suspended trades dealing with the cryptocurrency, following which CEO Jared Kenna wrote an open letter to Tradehill clients and addressed the situation apologetically citing the sudden withdrawal of $100,000 by a payment processor and the loss of Paxum’s capabilities.

Here are the salient points of the letter to TradeHill customers,

Effective immediately TradeHill will be shutting down trading / deposits and returning all client funds.

Due to increasing regulation TradeHill cannot operate in its current capacity without proper money transmission licensing. Combined with multiple bank account closures and Paxum’s decision to close all Bitcoin business accounts, we have deemed the best course of action is to halt trading and pursue licensing while raising funds.

Read the complete letter here.

The revivification of TradeHill into the Bitcoin market should bear some watching. With the currency hitting all-time highs and even today exceeding $70 USD in a two-day bubble, exchanges and payment processors are probably making bank.