US Department of Homeland Security Seizes Mt. Gox US Accounts
The U.S. Department of Homeland Security issues a seizure warrant for Mt. Gox’s Dwolla account after the company failed to register as a money transmitter in the U.S., disrupting USD-Bitcoin exchanges.
On May 15, 2013, the U.S. Department of Homeland Security issued a seizure warrant for Mt. Gox’s Dwolla account due to Mark Karpelès’ failure to register as a money transmitter in the United States. Mt. Gox had opened a Wells Fargo business account under its U.S. subsidiary, Mutum Sigillum LLC, to facilitate USD deposits and withdrawals.
During account setup, the bank asked whether the company exchanged currency for customers or accepted and transmitted funds on their behalf. Karpelès responded 'no' to these questions, which later became central to the legal actions. On June 21, 2013, U.S. authorities further seized Mt. Gox’s Wells Fargo account, adding $2.1 million to prior seizures, bringing the total to approximately $5 million.
This action immediately disabled Mt. Gox users’ ability to convert USD to Bitcoin and vice versa via Dwolla. Although Mt. Gox claimed the service would be restored within two weeks, it never fully resumed, contributing to growing operational and liquidity challenges for the exchange. The incident marked a significant regulatory and operational turning point in the history of Mt.
Gox and the early U.S.Bitcoin market.