Dept. of Homeland Security Freezes Dwolla Accounts

Dept. of Homeland Security Freezes Dwolla Accounts
Dept. of Homeland Security Freezes Dwolla Accounts

In it’s one of the first and most serious actions against Bitcoins, US Department of Homeland Security sacked Dwolla’s accounts and issued a court order for immediately ceasing all transactions between the former and Japanese currency exchange Mt. Gox.

Dwolla, a Iowa based startup, recently confirmed its customers that they are unable to move money to and from Mt. Gox due to the pertaining order received from US District Court of Maryland and DHS. Nicole Navas, a spokesperson for US Immigration and Customs Enforcement also confirmed the legal action against the organization in its recent conversation with CNET.

Refusing to provide a detailed insight into the whole matter, Navas told media only the details on layers, maintaining the secrecy of grounds under which Mt. Gox and Dwolla account transactions are ceased. The speculations, however, are that the matter might fall under a criminal investigation due to the involvement of Homeland Security.

Meanwhile Mt. Gox also refused to comment on the whole scenario. However, it posted a statement to its Google Plus account.

“Mt. Gox has read on the Internet that the United States Department of Homeland Security had a court order and/or warrant issued from the United States District Court in Maryland which it served upon the Dwolla mobile payment service with respect to accounts used for trading with Mt. Gox.

We take this information seriously. However, as of this time we have not been provided with a copy of the court order and/or warrant, and do not know its scope and/or the reasons for its issuance. Mt. Gox is investigating and will provide further reports when additional information becomes known.”

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