Mt. Gox CEO Faces Jail Time Over FinCEN Registration Issue

Bad just got worse for Japan-based BitCoin exchange service Mt. Gox, as IDG News reports it is experiencing further issues with U.S. Immigration and Customs Enforcement and the Department of Homeland Security after its Dwolla account was frozen earlier this week.

To accept U.S. dollars, Mt. Gox opened a Wells Fargo business for its LLC, but the media outlet says government documents it obtained indicate that it failed to register with FinCEN to limit fraudulent activity, missing a vital requirement for money services operating in the United States.

“The warrant alleges that Mt. Gox failed to register as a ‘money transmitting business’ in accordance with 18 U.S. Code 1960. Violators can be fined and sentenced up to five years in prison,” according to IDG.

Read the full report and view a copy of the seizure order here.

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