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Thread: Bitcoins are officially donkdown

  1. #1
    Nova Scotia's REAL #1 Webcam DJ sonatine's Avatar
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    Bitcoins are officially donkdown

    http://gawker.com/feds-seize-assets-...ange-506790294

    The problems keep coming for Mt. Gox, the world's biggest Bitcoin exchange. Just days after Gawker revealed a key business partnership had devolved into a $70 million lawsuit, the Department of Homeland Security seized a payment processing account belonging to the company, alleging it lied on financial documents.

    According to a warrant issued Tuesday by the U.S. District Court of Maryland, the DHS seized Mt. Gox's account with payments processing service Dwolla after an agent discovered that Mt. Gox did not properly register as a money services company when opening a U.S. bank account in 2011.

    Iowa-based Dwolla was an easy way for Americans to exchange cash for bitcoins through Mt. Gox without having to wire money to the company, which is Japanese-based and has struggled to establish an American base. But an affidavit by Homeland Security Investigations Special Agent Michael McFarland alleges that Mt. Gox has been using Dwolla to run an "unlicensed money transmitting business" through a U.S. subsidiary called Mutum Sigillum LLC. This is a federal crime punishable by up to five years in prison.

    The warrant alleges Mt. Gox CEO Mark Karpeles failed to disclose that he ran a money services business when opening a bank account with Wells Fargo in the name of Mutum Sigillum, a Delaware company he set up to facilitate Mt. Gox's Dwolla payments. The application asked several questions including "Do you deal in or exchange currency for your customer?" and "Does your business accept funds from customers and send the funds based on customers' instructions?" to which Karpeles responded no. Money transmitting services are required to register with the Department of Treasury's FINCen, which Mt. Gox has not done.

    However, Mutum Sigillum did function as a money transmitter, according to the warrant. Mt. Gox wired money to the Mutum Sigillum's Wells Fargo account from Japan, which was used to pay its customers who cashed out through Dwolla. An informant exchanged Bitcoins to dollars on Mt Gox through Dwolla, and bank records showed the transfer was done through Mutum Sigillum.

    Mt. Gox has not issued a statement on the allegations, but this latest scandal makes one wonder exactly how shady Mt. Gox, which originally started as an exchange site for Magic The Gathering Cards, is. Fancy Latin name aside, the barely-functioning website of Mutum Sigillum does not seem a very promising backbone on which to build the new Bitcoin Global World Economic Order, especially as feds seem intent on cracking down on the illicit use of the currency.


    Warrant:

    http://www.scribd.com/doc/141683565/...arrant-5-14-13

     
    Comments
      
      Rollo Tomasi: Pedofail
      
      Henry: wait for it...
    "Birds born in a cage think flying is an illness." - Alejandro Jodorowski

    "America is not so much a nightmare as a non-dream. The American non-dream is precisely a move to wipe the dream out of existence. The dream is a spontaneous happening and therefore dangerous to a control system set up by the non-dreamers." -- William S. Burroughs

  2. #2
    Nova Scotia's REAL #1 Webcam DJ sonatine's Avatar
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    This thread is now dual purpose and will also serve as the Micon suicide watch thread.

     
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      Rollo Tomasi: diagf rep
      
      Henry: wait for it...
    "Birds born in a cage think flying is an illness." - Alejandro Jodorowski

    "America is not so much a nightmare as a non-dream. The American non-dream is precisely a move to wipe the dream out of existence. The dream is a spontaneous happening and therefore dangerous to a control system set up by the non-dreamers." -- William S. Burroughs

  3. #3
    Serial Blogger BeerAndPoker's Avatar
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    I read about it yesterday but this write up makes things out much worse as they should be.

    Someone should call into DD radio tonight if Micon even shows his face and prank call his ass saying how they follow him on twitter and now have lost a majority of their life savings following his advice of buying up shitcoins.

  4. #4
    Nova Scotia's REAL #1 Webcam DJ sonatine's Avatar
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    judging from the timbre of micon's tweets during the recent unpleasantness, i expect hes getting plenty of phone calls just like that, and none of them will be pranks.

     
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      Rollo Tomasi: go fuk yourself rep
      
      Henry: *fixed*
    "Birds born in a cage think flying is an illness." - Alejandro Jodorowski

    "America is not so much a nightmare as a non-dream. The American non-dream is precisely a move to wipe the dream out of existence. The dream is a spontaneous happening and therefore dangerous to a control system set up by the non-dreamers." -- William S. Burroughs

  5. #5
    Photoballer 4Dragons's Avatar
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    I saw something that Amazon.com was releasing a digital currency as well? Deets anyone?

    http://www.dailymail.co.uk/sciencete...le-owners.html
    Last edited by 4Dragons; 05-15-2013 at 11:15 AM.

  6. #6
    Contributor Deal's Avatar
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    Thread title does not match with content. I read that Dwolla can't trade with MtGox. What percentage of bitcoin usage came from Dwolla?
    Quote Originally Posted by Jasep View Post
    I have always tried to carry myself with a high level of integrity in the poker community and I take it very personally when someone calls that in to question.

  7. #7
    Nova Scotia's REAL #1 Webcam DJ sonatine's Avatar
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    Quote Originally Posted by Deal View Post
    Thread title does not match with content. I read that Dwolla can't trade with MtGox. What percentage of bitcoin usage came from Dwolla?
    Ah, allow me to explain.


     
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      Rollo Tomasi: pedotine should get the chair rep
      
      Henry: *jazz hands*
    "Birds born in a cage think flying is an illness." - Alejandro Jodorowski

    "America is not so much a nightmare as a non-dream. The American non-dream is precisely a move to wipe the dream out of existence. The dream is a spontaneous happening and therefore dangerous to a control system set up by the non-dreamers." -- William S. Burroughs

  8. #8
    Contributor Deal's Avatar
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    I see, I hear you are good at putting worms on hooks.
    Attached Images Attached Images  
    Quote Originally Posted by Jasep View Post
    I have always tried to carry myself with a high level of integrity in the poker community and I take it very personally when someone calls that in to question.

  9. #9
    Nova Scotia's REAL #1 Webcam DJ sonatine's Avatar
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    ok so its not exactly officially donkdown.


    yet.



    ..OR IS IT.

     
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      Rollo Tomasi: fat slob rep
      
      Henry: wait for it...
    "Birds born in a cage think flying is an illness." - Alejandro Jodorowski

    "America is not so much a nightmare as a non-dream. The American non-dream is precisely a move to wipe the dream out of existence. The dream is a spontaneous happening and therefore dangerous to a control system set up by the non-dreamers." -- William S. Burroughs

  10. #10
    Quote Originally Posted by sonatine View Post
    ok so its not exactly officially donkdown.


    yet.



    ..OR IS IT.
    it isn't.

  11. #11
    Bitcoins are not dependant on mt gox for their long term survival, not in the least bit. Every time things go wrong with Gox, people say that its over for bitcoins. It wasn't true before, and it isn't true now. In fact, it has barely even affected the price of btc in the last 2 days.
    @CursedDiamonds on twitter

  12. #12
    Quote Originally Posted by sonatine View Post
    ok so its not exactly officially donkdown.


    yet.



    ..OR IS IT.
    #face #showers

  13. #13
    Serial Blogger BeerAndPoker's Avatar
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    Bitcoins thrive on demand and public perception of them. Many people should know the risks but when bumps along the way happen it does scare a bunch of people.

    Some might think this is a minor hurdle and since they haven't dropped in price that all is well but they are vulnerable at anytime.

    As for people who own a bunch of them you better get some wet wipes cuz it's gonna get shitty.

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    I told you fuckers about this scam currency a few months ago. It's backed by no government, which outside the black market makes its fucking worthless. It was like trading Cocaine. Is there a market for bitcoins? Yeah, if you are a shady fucker just like Cocaine has value. It was a glorified money laundering scheme.

    If you traded bitcoins make sure you paid your taxes, PAY YOUR TAXES. You have the IRS flagging honorable tea-party folks, so rest assured your trades are under the microscope.

  15. #15
    Bitcoins today are worth the same amount as they were last week and the week before. They are up about 700% since the beginning of the year. I wish all my investments were as officially donkdown as this one.

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    Quote Originally Posted by manowar View Post
    Bitcoins today are worth the same amount as they were last week and the week before. They are up about 700% since the beginning of the year. I wish all my investments were as officially donkdown as this one.

    What a fucking dope you are.

    Bitcoins have no value outside the small universe that trade them.

    The biggest exchange just got tanked.

    It's a black market currency. If you want to trade that shit go right ahead. You are flipping coins at this point. You are basically trading worthless currency.

  17. #17
    Owner Dan Druff's Avatar
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    I am surprised that bitcoins haven't taken a big dump -- or at least a temporary one -- given this news about Dwolla.

    It might happen soon as a delayed reaction sort of thing (as people start becoming annoyed with their inability to get money over to Gox easily).

    I can't imagine this being good for the upcoming health of the bitcoin economy.

    If the public perception becomes one that the DOJ is going after bitcoin payment processors, the value will fall big time.

  18. #18
    Nova Scotia's REAL #1 Webcam DJ sonatine's Avatar
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    which lends itself to the assertion that the value of these coins is being artificially propped up.

     
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      Rollo Tomasi: keep trolling me and I will neg rep the shit out of you rep
      
      Henry: *fixed*
    "Birds born in a cage think flying is an illness." - Alejandro Jodorowski

    "America is not so much a nightmare as a non-dream. The American non-dream is precisely a move to wipe the dream out of existence. The dream is a spontaneous happening and therefore dangerous to a control system set up by the non-dreamers." -- William S. Burroughs

  19. #19
    Nova Scotia's REAL #1 Webcam DJ sonatine's Avatar
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    Quote Originally Posted by manowar View Post
    Bitcoins today are worth the same amount as they were last week and the week before. They are up about 700% since the beginning of the year. I wish all my investments were as officially donkdown as this one.



    they will be, hoser.
    "Birds born in a cage think flying is an illness." - Alejandro Jodorowski

    "America is not so much a nightmare as a non-dream. The American non-dream is precisely a move to wipe the dream out of existence. The dream is a spontaneous happening and therefore dangerous to a control system set up by the non-dreamers." -- William S. Burroughs

  20. #20
    Quote Originally Posted by Dan Druff View Post
    I am surprised that bitcoins haven't taken a big dump -- or at least a temporary one -- given this news about Dwolla.

    It might happen soon as a delayed reaction sort of thing (as people start becoming annoyed with their inability to get money over to Gox easily).

    I can't imagine this being good for the upcoming health of the bitcoin economy.

    If the public perception becomes one that the DOJ is going after bitcoin payment processors, the value will fall big time.
    it did take a small one but then gox got hit by a ddos. btc-e the secondary exchange held the price steady.

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