1 More Reason to Use Bitcoin – Feds Steal Mt. Gox Dwolla Funds

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Posted by Cynic | Posted in Awake, Money, Philosophy, Police State | Posted on 16-05-2013

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The irony here is simply sickening. The Feds have stolen funds from Mt. Gox’s Dwolla account. Don’t they see that what they are doing only gives 1 more reason to use bitcoin? They can’t seize bitcoins, so that danger is eliminated. Governments can steal your fiat stored in banks or payment processors, but they can’t steal your bitcoin unless they steal your wallet.dat file and threaten, coerce, or torture you to get the password for it.

http://arstechnica.com/tech-policy/2013/05/feds-seize-money-from-top-bitcoin-exchange-mt-gox/

Feds seize money from Dwolla account belonging to top Bitcoin exchange Mt. Gox

Mobile payments service won’t move money to and from Mt. Gox post-court order.

The Department of Homeland Security has apparently shut down a key mobile payments account associated with Mt. Gox, the largest Bitcoin exchange.

Chris Coyne, co-founder of online dating service OKCupid, tweeted out an e-mail he received from Dwolla this afternoon. The e-mail states that neither Coyne, nor presumably any other Dwolla user, will be able to transfer funds to Mt. Gox.

Dwolla confirmed the change to the New York Observer, which first reported the story. Dwolla received a seizure warrant from a federal court.

“The Department of Homeland Security and US District Court for the District of Maryland issued a ‘Seizure Warrant’ for the funds associated with Mutum Sigillum’s Dwolla account (a.k.a. Mt. Gox),” a Dwolla spokesperson told NYO’s BetaBeat. “Dwolla has ceased all account activities… for Mutum Sigillum while Dwolla’s holding partner transferred Mutum Sigillum’s balance, per the warrant.”

It isn’t yet clear why this seizure happened, and Dwolla isn’t saying anything beyond confirming the court order. Mt. Gox didn’t immediately respond to an inquiry from Ars about the seizure. A user on Bitcoin StackExchange published this short reply received from an inquiry to Mt. Gox about the shut-down: “Thank you for the e-mail. We can see that the Dwolla transactions are not getting processed right now. We will contact Dwolla and post an announcement regarding this. Your patience is appreciated till then.”

I’m certain the irony will be lost on the technocrat bureaucraps (not a typo) who fundamentally don’t understand bitcoin, let alone what “money” and “currency” are.

The crypto-anarchists are sounding better all the time…