Dwolla Sees Mt. Gox Transactions Blocked By DHS Seizure Warrant

Users seeking to withdraw or deposit money into the Bitcoin trading platform Mt. Gox were barred from using mobile payment service Dwolla to do so late Tuesday afternoon in an incident that was not due to a technical glitch on behalf of either company.

According to a report from Betabeat, the Department of Homeland Security and the U.S. District Court for the District of Maryland issued and acted upon a seizure warrant for the funds associated with Mt. Gox's Dwolla account.

“In light of the court order, procured by the Department of Homeland Security, Dwolla has ceased all account activities associated with Dwolla services for Mutum Sigillum [Mt. Gox] while Dwolla’s holding partner transferred [Mt. Gox]’s balance, per the warrant," a representative for Dwolla told Betabeat.

This frustrated user like OKCupid co-founder Chris Coyne, who the news outlet says posted a screenshot of the denial message he received when trying to make a transaction.

Representatives from Dwolla say that they will continue to require a court order before honoring requests from law enforcement officials to seize funds or block access to accounts.

Read the full report here.



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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