Homeland Security's ICE Group Cuts Off Dwolla Bitcoin Transfers

from the no-explanation dept

Update: The DHS has released a copy of the warrant, which claims probable cause to believe that Mt. Gox is engaging in money transmitting without a license.

We've discussed in the past how the government seems very skeptical of Bitcoin, and now it may be doing something about it. As a whole bunch of you have sent in, ICE (Immigrations and Customs Enforcement), a division of Homeland Security -- best known around here for its cowboy attitude towards censoring websites with no basis -- has cut off Dwolla transfers to Mt. Gox, the biggest Bitcoin exchange, preventing Dwolla from processing any Bitcoin transfers. According to Declan McCullagh at News.com:
The U.S. Department of Homeland Security confirmed it has initiated legal action that prompted the Dwolla payment service to stop processing bitcoin transactions.

Nicole Navas, a spokesperson for U.S. Immigration and Customs Enforcement, confirmed the legal action to CNET this afternoon.
Chris Coyne, from Ok Cupid, posted a screenshot of an email from Dwolla claiming that ICE had "seized" the account of Mt. Gox:
Mt. Gox, for its part, claims this is the first it's heard of anything:
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.
I would imagine there will be a lot more to this story, but for the moment details are scarce.

Reader Comments

Subscribe: RSS

View by: Time | Thread

  1. identicon
    Anonymous Coward, 15 May 2013 @ 1:03pm

    Re: Bitcoin is essentially a pyramid scheme.

    Hurp de durp Bitcoin is like a casino, it's a pyramid scheme, it's not 'currency' (even though man websites accept it as a method of payment).

    Do you even fucking read up on any subject that you profess your bullshit theories on, or do you just deepthroat the dictionary and spout the first few meaningful words that formulate sentence structures before you regurgitate them via your keyboard?

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here
Get Techdirt’s Daily Email
Use markdown for basic formatting. HTML is no longer supported.
  Save me a cookie
Follow Techdirt
Techdirt Gear
Show Now: Takedown
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Report this ad  |  Hide Techdirt ads
Recent Stories
Report this ad  |  Hide Techdirt ads


Email This

This feature is only available to registered users. Register or sign in to use it.