Wednesday, May 15, 2013

Homeland Security seizes funds at main Bitcoin exchange issues court order against Mt Gox

US Department of Homeland Security issues court order against Mt Gox

Summary: Bitcoin exchange Mt Gox's Dwolla account has come under the scrutiny of the US Department of Homeland Security, with users now unable to use the payment network to transfer bitcoins.

The US Department of Homeland Security (DHS) has issued a court order to payment network provider Dwolla to cease providing services to the company that sits between it and Bitcoin exchange Mt Gox.
Dwolla sent emails to customers that have recently made transactions between it and Mt Gox, informing them that it was "unable to move money to and from Mutum Sigillum LLC's Dwolla account" due to orders it had received from DHS and the US District Court of Maryland. OkCupid co-founder Chris Coyne posted a photo of the email to Twitter this morning, and several forum users at BitcoinTalk.org have confirmed its legitimacy.

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