A new Baltimore federal court filing shows that more than $2.9 million was seized by the Department of Homeland Security from Mutum Sigillum LLC, a U.S. subsidiary of Tokyo-based Bitcoin exchange Mt. Gox, in May.
Funds totaling $2,915,507.40 were seized from Dwolla, an alternative payment provider, reported tech news site GigaOm. Homeland Security alleged that Mt. Gox was operating in violation of the Bank Secrecy Act and Fincen rules on virtual currency.
One of the easiest ways for U.S. consumers to obtain bitcoins, a near-anonymous virtual currency, is to buy them through an exchange such as Mt. Gox, which accepted transfers from Dwolla accounts. Few other options exist for consumers, especially for consumers that do not have a bank account to fund their bitcoin purchases.
Some users purchase bitcoins in face-to-face cash transactions. Soon, consumers will also be able to use the Lamassu Bitcoin machine, a vending machine for bitcoins. Otherwise, most bitcoin users must use a bank or wire transfer to obtain the digital currency.
While Dwolla has received attention for its connection to the action against Mt. Gox, the alternative payments provider doesnt work with digital currency. In May, Dwolla received $16.5 million in funding to expand outside the Midwest , where the company was founded.