14 May '13, 11pm

Homeland Security cut off Dwolla bitcoin transfers

John Morton, director of U.S. Immigration and Customs Enforcement, Homeland Security's principal criminal investigative division (Credit: Getty Images) The U.S. Department of Homeland Security confirmed it has initiated legal action that prompted the Dwolla payment service to stop processing bitcoin transactions. Nicole Navas, a spokesperson for U.S. Immigration and Customs Enforcement, confirmed the legal action to CNET this afternoon. Dwolla, a Des Moines, Iowa-based startup, which raised $16.5 million in funding two weeks ago, notified users about the move earlier Tuesday. It blamed the decision on "recent court orders" limiting its ability to send money through Mt. Gox, the largest bitcoin exchange. "In order not to compromise this ongoing investigation being conducted by ICE Homeland Security Investigations Baltimore, we cannot comment beyond the information in the wa...

Full article: http://news.cnet.com/8301-13578_3-57584511-38/homeland-se...

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Homeland Security cuts off Dwolla bitcoin transfers

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