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Feds Seized $2.9 Million in Bitcoin Funds from Mt. Gox

Feds seized $2.9M in Bitcoin funds from Mt. Gox, court docs show
Jeff John Roberts
19 August 2013
http://gigaom.com/2013/08/19/feds-seized-2-9m-in-bitcoin-fun...

One of the most important moments in Bitcoin’s history came in May when Homeland Security seized an account tied to the biggest Bitcoin exchange. Now, we know how much the feds confiscated.

The federal government sent a strong signal to Bitcoin traders earlier this year when the U.S. Department of Homeland Security seized an account belonging to Mt. Gox, the most popular exchange for people to buy and sell the crypto-currency. It was unclear at the time just how much currency the government confiscated.

But a new filing in Baltimore federal court (embedded below) shows the feds seized $2,915,507.40 held in an account controlled by Dwolla, a third-party payment platform similar to PayPal. The funds belonged to Mutum Sigillum LLC, a U.S. subsidiary of Tokyo-based Mt. Gox.

It’s unclear what will become of the funds. Neither the US Attorney’s Office in Maryland nor Mt. Gox immediately returned a request for comment.

The feds decided to seize the account because Mt. Gox owner Mark Karpeles had allegedly concealed the fact that he opened the account in order to run a money transfer business. Karpeles has since stated that Mt. Gox is in compliance with federal and state financial regulations.

At the time, the seizure was significant because Dwolla-based payments to Mt. Gox were the easiest way that Americans could buy and sell large quantities of Bitcoin. While Mt. Gox has continued to process American transactions after the seizure, it has been slow to deliver withdrawals and has from time to time suspended them.

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Germany answers: Bitcoin recognized by Germany as legal tender

Germany answers: Bitcoin recognized by Germany as legal tender
Published: Monday, 19 Aug 2013 | 10:25 AM ET

Virtual currency bitcoin has been recognized by the German Finance Ministry as a "unit of account", meaning it is now legal tender and can be used for tax and trading purposes in the country.

Bitcoins is not classified as e-money or a foreign currency, the Finance Ministry said in a statement, but is rather a financial instrument under German banking rules. It is more akin to "private money" that can be used in "multilateral clearing circles", the Ministry said.

"We should have competition in the production of money. I have long been a proponent of Friedrich August von Hayek scheme to denationalize money. Bitcoins are a first step in this direction,"said Frank Schaeffler, a member of the German parliament's Finance Committee, who has pushed for legal classification of bitcoins.
http://www.cnbc.com/id/100971898

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