Dwolla Payments to Bitcoin Platform Shut Down by Homeland Security

 By 
Alex Fitzpatrick
 on 
Dwolla Payments to Bitcoin Platform Shut Down by Homeland Security

Dwolla users are unable to transfer money to and from leading Bitcoin trading platform Mt. Gox following a court order from the Department of Homeland Security.

Users of Dwolla's money-moving service began receiving this message as of Tuesday afternoon, first posted on Twitter by OkCupid cofounder Chris Coyne and reported upon by Betabeat.

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Jordan Lampe of Dwolla declined to offer further details.

"Unfortunately, other than the information we've been able to provide our affected users, we've no additional information to provide," wrote Lampe in an e-mail to Mashable. "We respect the sensitivity of the matter, but the issue at hand lies with Mt. Gox and the Department of Homeland Security/Federal Government. We're working hard with our affected users to the best of our ability."

A court order related to Dwolla is not yet accessible on PACER, the government's online repository for court records. A Department of Homeland Security press officer referred Mashable to a DHS email address; we have not yet received a reply.

Dwolla users have been left wondering what will happen to their ability to use Dwolla to transfer funds between traditional forms of currency and Bitcoin.

@alexjamesfitz I had a transfer in progress when this news came down, don't know where my money is. Dwolla won't tell me. Not happy.— Ben Doernberg (@UpdateBen) May 14, 2013

@updateben I can appreciate the concern. Mind pinging me at jordan_@_dwolla.com?— Jordan Lampe (@JsLampe) May 14, 2013

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