Wednesday, 15 May 2013 19:52

Troubles in Bitcoin paradise

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According to Ars Technica, the U.S. Homeland Security closed a key account for mobile payment associated with Bitcoin Stock Exchange Mt. Gox. This is the account Dwolla owned by Mutum Sigillum (Mt. Gox property) from which resources are paid to the account of Mt. Goxa which is the largest Bitcoin exchange on the Internet. For those who do not know, Dwolla was the easiest way of buying Bitcoin as other services for online payment, such as PayPal, for example, do not give the option to purchase Bitcoin.

According to the New York Observer, Homeland Security has asked the court to seize funds that belongs to Dwolla account, and the court promptly approved their request. The reasons for this request have not yet been published. Bitcoin lately had grown rapidly and but also gone on a downward spiral, and earlier it had the reputation for being used in criminal activities (transfers of arms, people and drugs), which really does not mean anything, because for the same jobs criminals can use any other currency.

However, as a warrant for the seizure of the funds comes from the U.S. Homeland Security who are often called the American Gestapo, and not by the Ministry of Finance or the FBI, it is possible that the reasons are political, not purely financial.

Is this another example of the US Goverenment overextending their authority? Tell us in our Forum

Read 2001 times Last modified on Wednesday, 15 May 2013 19:55

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