TweakTown
Tech content trusted by users in North America and around the world
5,683 Reviews & Articles | 36,177 News Posts
Weekly Giveaway: Fractal Design Arc Cases Contest (Global Entry!)

Mt. Gox bank account seized by US Department of Homeland Security

Bitcoin exchange Mt. Gox has its bank account seized by US government

| Business, Financial & Legal News | Posted: May 16, 2013 1:45 pm

For the most part, the recent success of the Bitcoin can be attributed to Mt. Gox, the largest and most popular Bitcoin exchange on the internet. Earlier this week the Department of Homeland Security seized the Mutum Sigilum account Mt. Gox held at Wells Fargo bank.

 

TweakTown image news/3/0/30415_1_mt_gox_bank_account_seized_by_us_department_of_homeland_security.jpg

 

The Mutum Sigilum account was the lifeblood of Dwolla, the PayPal like Bitcoin to US currency processor. The account was seized based on several discrepancies in the paperwork Mt. Gox owner Mark Karpeles filled when opening the account with Wells Fargo. When the application asked if Mutum Sigilum LLC was a business engaged in monetary services, Karpeles stated "No." Below is an excerpt from the actual warrant used to seize the account.

 

The application asks several questions; to include, "Do you deal in or exchange currency for your customer?" and "Does your business accept funds from customers and send the funds based on customers' instructions (Money Transmitter)?" Karpeles answered these questions "no," indicating that Mutum Sigilum LLC does not deal in or exchange money, and that it does not send funds based on customer instructions. Money transmitting businesses are required by 31 USC section 5330 to register as such with FinCEN. According to FinCEN records on May 6, 2013, neither Mt. Gox nor the subsidiary, Mutum Sigilum LLC, is registered as a Money Service Business.

NEWS SOURCE
Extremetech.com

Related Tags

Further Reading: Read and find more Business, Financial & Legal news at our Business, Financial & Legal news index page.

Do you get our news RSS feed? Get It!

Post a Comment about this news

Latest Tech News Posts

View More News Posts

Latest Downloads

View More Latest Downloads

TweakTown Web Poll

Question: Did EA kill the Battlefield franchise with the terrible BF4 issues?

Yes, Battlefield is doomed

No, Battlefield will live on strong

I'm not sure, but I know EA needs to improve its game

or View the Results

View More Polls

Forum Activity

View More Forum Posts

Press Releases

View More Press Releases
Get TweakTown updates via Facebook!
Just click the "Like" button below