Court documents from May revealed the Department of HomelandSecurity seized nearly $3 million from a business account at the$2.4 billion Veridian Credit Union in Waterloo, Iowa, over what theDHS said was an unlicensed money transmitting business operated bythe business member's client.
The business member, person-to-person payment service Dwolla,keeps all its deposits at the credit union, which also hosts itstransactions through the Automated Clearing House system.
Dwolla client Mutum Sigillum, a subsidiary of Japan-basedBitcoin virtual currency exchange firm Mt.Gox, was determined to beoperating illegally by DHS. According to the seven-page seizurewarrant filed May 14 in Maryland U.S. District Court, Mt.Gox ownerMark Karpeles told Wells Fargo while opening a business accountthat he did not engage in money services.
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