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.
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