Dwolla users are unable to transfer money to and from leading Bitcoin trading platform Mt. Gox following a court order from the Department of Homeland Security. ~ Related article
Users of Dwolla’s money-moving service began receiving this message as
of Tuesday afternoon, first posted on Twitter by OkCupid cofounder Chris Coyne and reported upon by Betabeat.
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.
A representative for Dwolla told Betabeat that the company is “not
party” to this matter and encourages those with questions to reach out
to Mt. Gox or the DHS.
“The Department of Homeland Security and U.S. District Court for the
District of Maryland issued a ‘Seizure Warrant’ for the funds associated
with Mutum Sigillium’s Dwolla account (a.k.a. Mt. Gox),” he said.“In
light of the court order, procured by the Department of Homeland
Security, Dwolla has ceased all account activities associated with
Dwolla services for Mutum Sigillum while Dwolla’s holding partner
transferred Mutum Sigillium’s balance, per the warrant.”“Dwolla requires a court order before honoring requests such as seizing funds or revoking access to an account,” he added.
Here’s a screenshot of the email, posted to Hacker News:
Jordan Lampe of Dwolla declined to offer further details.
Update: Here is what Mt. Gox sent us in response to a request for comment:
Thank you for the email. We can see that the Dwolla transactions are
not getting processed right now. We will contact Dwolla and post an
announcement regarding this. Your patience is appreciated till then.
Update 2: Mt. Gox has posted the following comment to its Facebook page:
Like many who have contacted us, MtGox has read on the Internet that
the United States Department of Homeland Security had a court order
and/or warrant issued from the United States District Court in Maryland
which it served upon the Dwolla mobile payment service with respect to
accounts used for trading with MtGox.
We take this information
seriously.
However, as of this time we have not been provided with a
copy of the court order and/or warrant, and do not know its scope and/or
the reasons for its issuance. MtGox is investigating and will provide
further reports when additional information becomes known.
Josey Wales – May 15, 2013 – posted at BeforeIt’sNews
Related article…
Here’s Why The Feds Seized Assets From The World’s Biggest Bitcoin Exchange
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