Dwolla Halts MtGox Trading After Court Order
Dwolla suspended to and from transactions of USD with MtGox due to a recent court order / notice by the Department of Homeland Security and U.S. District Court for the District of Maryland. Every Dwolla user, who has processed with MtGox received the following message in their e-mail.
Due to recent court orders received from the Department of Homeland Security and U.S. District Court for the District of Maryland, Dwolla is no longer legally able to service Mutum Sigillum LLC’s account.
This is a courtesy email encouraging you to follow up on any uncompleted orders with Mutum Sigillum LLC as Dwolla is now unable to move money to and from Mutum Sigillum LLC’s Dwolla account. Dwolla is not party to this matter nor does it have any information or further insight into the situation. We strongly encourages those with questions to contact Mutum Sigillum LLC. On behalf of Dwolla, we apologize for this inconvenience.
MtGox is outside the jurisdiction of the US government, they can’t seize their accounts or anything of theirs at all. It was only a matter of time before the US Government start closing the gateways to convert BTC to USD and vice versa.
Dwolla is among the fastest, least expensive and most popular way for withdrawing USD funds from a Mt. Gox account. Anyway This move only affects Bitcoin traders that used Dwolla to fund their trades. One can still use bank wires to send and receive cash from MtGox. Though Bank wires can be expensive for small traders.
MtGox Statement Regarding Dwolla :
Like many who have contacted us, MtGox 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 MtGox. 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. MtGox is investigating and will provide further reports when additional information becomes known.
Bitcoin prices were originally down about 10% over the news, but very soon price recovered to around $110.