World’s Largest Bitcoin Exchange, Mt. Gox, Raided by Feds; CEO May Go to Jail For Up to Five Years

 
 
 

According to Gawker, the Department of Homeland Security has seized a Dwolla payment processing account belonging to Mt. Gox, the world’s biggest Bitcoin exchange. Allegedly, Mt. Gox did not properly register as a money services company in 2011, and has been running an “unlicensed money transmitting business” through a U.S. subsidiary called Mutum Sigillum LLC.

That means either a fine, or a maximum of five years in jail, according to Business Insider.

The Japanese company’s account with Dwolla — based in Iowa — was the primary conduit for American using Bitcoins. Mt. Gox CEO Mark Karpeles set up a Delaware-based Wells Fargo account for “Mutum Sigillum LLC” to pay customers who cashed out through Dwolla.

It’s all very illicit and scandalous, and if you’re not a fan of the Winklevoss — which we totally are, but y’know, they’re not everyone’s cup of tea — then you’ll love the fact that the boys currently own 1% of all Bitcoins.

And they also both describe themselves as “Bitcoiners” on their Twitter accounts. In fact, the last tweet from Tyler, on May 13, is a retweet from the ‘Bitcoin Foundation:’ “Bitcoin 2013 Keynote Speakers announced: Cameron and Tyler Winklevoss.”

Always with their ears to the streets, those two.

Check out the full warrant embedded below: