21 April 2015

US govt freezes Mt. Gox account with Dwolla

15 May 2013  |  5781 views  |  0 STOP

The US Department of Homeland Security has served payments start-up Dwolla with a court order telling it to stop processing transactions linked to bitcoin exchange MT. Gox.

In an e-mail to users - shared on sites including Twitter and Reddit - Dwolla says that the court orders mean it "is no longer legally able to service" MT. Gox's account.

The move cuts off a popular way for American bitcoin users to move their funds in and out of Japan-based MT Gox, which recently saw its planned partnership with US counterpart CoinLab fall apart.

In its e-mail to customers, Dwolla says it is "not party to this matter nor does it have any information or further insight into the situation." The firm points disgruntled users to MT. Gox but in a statement on its site, the exchange reveals that it only learned about the issue through the Internet.

"Mt. Gox takes this information seriously. However, as of this time Mt. Gox has not been provided with a copy of the court order and/or warrant and does not know its scope and/or the reasons for its issuance. MtGox is investigating and will provide further reports when additional information becomes known."

KeywordsLEGAL

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

14 May, 2013
03 May, 2013
18 April, 2013
19 March, 2013
07 March, 2012

Related company news

 

Top topics

Most viewed Most shared
BBVA buys UX firm Spring Studio
7332 views comments | 35 tweets | 17 linkedin
UK banks covering up cybercrime losses - C...
7216 views 14 comments | 26 tweets | 14 linkedin
PayPal exec wants to replace passwords wit...
5942 views comments | 38 tweets | 17 linkedin
World Bank reports big drop in numbers of...
5404 views 10 comments | 37 tweets | 16 linkedin
RBS and NatWest customers go into meltdown...
5235 views comments | 10 tweets | 8 linkedin

Featured job

up to £100K base, commission, benefits
London, UK

Find your next job