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From a seizure warrant to a seizure of $2.9 Million worth of Bitcoins

US Government has started making its move on curbing the flow of Bitcoins. First of such moves by the US Government is to seize $2.9 Million worth of Bitcoin currency from Mutum Sigillum LLC, a subsidiary of Mt. Gox. According to ‘The Register,’ Mt. Gox is the world’s largest Bitcoin exchange. There are chances that $2.9 Million may not be returned back.

In May, Mutum Sigillum’s Dwolla based account was frozen and the Government termed this freeze as a Seizure Warrant. Earlier this month, the complete Dwolla based account was seized. It is speculated that the seizure amounted to about 0.2% of all the Bitcoins in existence.

Mt. Gox has currently suspended trading of Bitcoins with US dollars following the seizure. Another Bitcoin exchange OKPay has also halted transferring of Bitcoins.

LTP View: We see more legal action on its way now that the Government is putting the hammer down on curbing the flow of Bitcoin and other virtual currencies.

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