Things have been very up-and-down for Bitcoin lately and the virtual currency’s road coud be getting even rockier now that the United States federal government is getting involved. IDG News reports that the U.S. District Court in Maryland this week order the seizure of Bitcoin exchange Mt. Gox’s funds because it allegedly “failed to register as a ‘money transmitting business’ in accordance with 18 U.S. Code 1960.” The court-issued warrant alleges that Mt. Gox owner Mark Karpeles denied that his firm exchanged currency or “transmitted funds based on instructions to customers” in a questionnaire supplied by Wells Fargo back in 2011. Wells Fargo issues such questionnaires to determine whether clients it works with need to register as currency traders with the U.S. Treasury Department.
World’s largest Bitcoin exchange accused of violating U.S. financial law
Published May 16th, 2013 8:30PM EDT
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Bitcoin
Brad Reed has written about technology for over eight years at BGR.com and Network World. Prior to that, he wrote freelance stories for political publications such as AlterNet and the American Prospect. He has a Master's Degree in Business and Economics Journalism from Boston University.
