US Department of Homeland Security 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.

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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.

Mutum Sigillum is the organisation that Mt Gox uses to handle its Dwolla transactions. According to the domain registrar details, both Mt Gox and Mutum Sigillum are controlled by the same company: Tibanne Co.

The suspension of services between Dwolla and Mt Gox has the effect of preventing any traders from using Dwolla to transfer bitcoins or make payments to and from Mt Gox.

Dwolla stated in its email that as it is not a party to the matter, it does not have any information or further insight into the situation. It encouraged affected customers to contact Mutum Sigillum directly, and reiterated its policy of requiring a court order before acting on requests to seize funds or revoke access to accounts.

Topics: Banking, Government US

Michael Lee

About Michael Lee

A Sydney, Australia-based journalist, Michael Lee covers a gamut of news in the technology space including information security, state Government initiatives, and local startups.

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8 comments
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  • Education or enlightenment

    DHS is a unconstitutional illegal entity, Barry Soetoro is a fraud and a worldwide war criminal.. He works for the international banking cabal that is best described by.. REVELATION 17 .. and JUDE 4-11.. They have been caught red handed and now there is nowhere for them to run or hide ..REVELATION 6.12.. and they know it is over.. REVELATION 12.12.. and as you read these words.. REVELATION 16.12.. they are being judged in accordance with.. REVELATION 20.12 .. by.. REVELATION 22.12.. and crew.. MATTHEW 25.31..
    EJLima
    • re:

      Gibberish.
      Sir Name
    • I concur.

      Re: "original" post.
      Quoting scripture to prove the illegality of a real world entity indicates an urgent visit to a psychiatrist is needed.
      allis0
    • Nutjob!

      stop using the Bible for your own inane agenda. rather, use facts? I hope that you're not a Christian because nutjobs like you make the rest of the Christians hang their heads in shame. Pity they ave to always give the nutjobs a voice.
      steelehawke
  • Like most movie commercials...

    ...this article comes across as exciting, without actually giving a clue as to what any of it is about. Almost wish I knew who/what "Mt. Gox" is, but not sure if I need to care?
    Chip Moody
    • re:

      I think it's a giant money laundering/tax avoidance scam.
      Sir Name
    • Mt Gox...

      Magic The Gathering Online Exchange... And now they moved on to working as a Bitcoin exchange. They're based in Japan. So far they appear to be legit. Don't know why Department of Homeland Security is involved.
      Natanael_L
  • Governments trying to shut down alternatives to central banks

    All people should be concerned - countries are trying to assert their monopoly over money. The question is - should any other entity (other than state governments) be allowed to create an exchangeable currency? Bitcoin is a much more interesting social and economic experiment than most people think. Philosophically, it raises very interesting questions about the nature of the state and basic freedoms.

    It is perhaps unfortunate that it appears to have been used for a number of illicit activities. It is possible the prevalence of these activities has been exagerated by vested (competing) interests? I do not think we have any way of knowing. Bitcoin also comes at an interesting time - one in which confidence in traditional state backed currencies is low.
    dimonic