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DOJ Freezes Accounts Between Bitcoin Exchange and Dwolla: Maryland Center Stage

Written by:
Aaron Goldstein
Published on:
May/15/2013
DOJ Freezes Accounts Between Bitcoin Exchange and Dwolla:  Maryland Center Stage

The US Department of Justice on Tuesday froze accounts belonging to one of Bitcoin’s most prominent exchanges, Mt. Gox.

BetOnline

A search warrant reveals that the DOJ alleges Mt. Gox is in direct violation of US money exchange and money transfer laws.  This represents the first action taken by US law enforcement related to the digital currency.

US Homeland Security froze Mt. Gox funds held at Dwolla, a payment solutions company similar to that of PayPal. 

From Ars Technia:

In the warrant, a special agent with Homeland Security Investigations (HSI), states that there's probable cause to believe Mt. Gox is engaging in "money transmitting" without a license. That's a crime punishable by a fine or up to five years in prison. The warrant goes on to demand that Dwolla hand over the keys to account number 812-649-1010, which is owned by Mt. Gox subsidiary Mutum Sigillum LLC.

Homeland Security used a confidential informant, based in Maryland, to conduct the investigation, according to the search warrant.  Maryland has been on the frontline of taking on Internet gambling companies over the past few years, issuing indictments against Bodog.com, BetED.com and DoylesRoom.com along the way.

Online gambling companies have begun to look towards Bitcoin as a way of moving money to and from players residing in the USA.

- Aaron Goldstein, Gambling911.com

 

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