US govt seized $2.9m from Mt.Gox account

21 August 2013

Earlier in 2013, the U.S. Department of Homeland Security seized an account belonging to Mt.Gox, the most popular exchange for people to buy and sell Bitcoins.

However, at the time it was not clear how much money the government confiscated.

This has now been revealed to be more than $2.9 million, which was held in an account controlled by Dwolla, a third-party payment platform. The funds involved belonged to Mutum Sigillum, a US subsidiary of the Tokyo-based Mt.Gox.

A Baltimore federal court filing obtained by GigaOm revealed the full amount seized was $2,915,507.40.

Dwolla was served with a court order in May 2013, which claimed probable cause that Mt.Gox was operating as an unlicensed money transmitting business.

It is not known what will happen to the funds. If Mutum Sigillum be cleared of violating US finance law, it could eventually be returned, although a federal judge has recently ruled Bitcoin should be considered a form of money and therefore it may not be given back.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development