2013-05-15 BI: Why The Feds Seized Assets From The Biggest Bitcoin Exchange

[Arvicco]

http://www.businessinsider.com/mt-gox-bitcoin-exchange-shut-down-2013-5

[vokain]

why is the url titled "shut down"

[Arvicco]

why is the url titled "shut down"

Makes it more sensational I guess...

[aigeezer]

What does this bit mean?... "By using a confidential informant to move Bitcoins through Mt. Gox to Dwolla, one of the most popular ways to turn the digital currency into physical currency, authorities were able to trace the money and find it to be a violation."

There's no need for a confidential informant to move BTC. You can't move BTC to Dwolla, as far as I know. Authorities traced what money?... the implication is that BTC is money, but that's quite a leap. Authorities have not found anything to be a violation, not even the ambiguous "it" of the article - they have made an allegation.

The article seems extremely biased... but why? What's the game exactly?

[kjlimo]

I thought the article stuck to the facts, but simply was unclear on some details.

I assume they meant selling bitcoin to obtain USD and then transfer the USD to their Dwolla account and ultimately a bank account.

I haven't ready the seizure report yet cuz it formats horribly on my phone, but I'm happy to understand what happened.

Let's hope that fine is small enough for Mtgox to pay it & get the license & continue operating... or hire some lawyers to explain why Mtgox didn't need it.