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Mt. Gox

Homeland Security seizes U.S. Dwolla account

15 May, 2013

The US Department of Homeland Security (DHS) issues a warrant (document) to seize money from Mt. Gox’s US subsidiary’s account with payment processor Dwolla. The warrant suggests the US Immigration and Customs Enforcement (ICE), an investigative branch of the DHS, feels the subsidiary, which should have been licensed by the US Financial Crimes Enforcement Network (FinCEN), has been operating as an unregistered money transmitter in the United States.

In order to accept funds in dollars, Mt. Gox opened a Wells Fargo business account for Mutum Sigillum LLC (Mt. Gox’s American subsidiary). The company had to complete a document that states whether it provides money services or not. The warrant reads: “That document was completed on May 20, 2011, and identified Mutum Sigillum LLC as a business not engaged in money services.”

In particular, Karpeles answered no to two important questions: “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)?”