Aussie MtGox processor Technocash hit in Liberty Reserve case

Hmm can a foreign government demand to seize assets of an Australian company? Or are the funds in transit and just in custodial possession?

Wonder if this is the modus operandi moving forward to counter Bitcoin - go after anyone offering conversion to fiat.
 
From 2002-06, United States businessmen Arthur Budovsky and Vladimir Kats ran a digital currency exchange service known as GoldAge.[4] In July 2006, the duo were indicted on charges of operating an illegal financial business, a felony. They were sentenced to five years in prison in 2007, but the sentence was reduced to five years of probation.[4] Budovsky fled the country, settling in Costa Rica.[6] He subsequently became a naturalized citizen of Costa Rica when he married a Costa Rican woman, and renounced his American citizenship in 2012.[7]
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Following an investigation by officials in 17 countries, a sealed indictment was issued by the US government.[2] The Liberty Reserve website was taken offline on May 24, 2013.[1] Budovsky was arrested in Spain on charges of money laundering the same day, after three homes and the five apparent shell businesses he owned were raided.[8] Four others, including Kats were arrested across three countries - Costa Rica, Spain, and the United States. Two others are at large in Costa Rica. The indictment, unsealed on May 28, charges the seven principle employees, as well as Liberty Reserve itself with money laundering and operating an unlicensed money transmitting business, and seeks $25 million in damages.[2] The charges were leveled using a provision of the Patriot Act, since Liberty Reserve was not an American company.[3] The United States was expected to seek Budovsky's extradition.[4] He could face up to 30 years in prison.[3]
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http://en.wikipedia.org/wiki/Liberty_Reserve

A little outside of their jurisdiction huh? Non-US citizen, non-US company, arrested outside of US based on a US indictment, being extradited to the US to face US charges.
 
goldpelican said:
A little outside of their jurisdiction huh? Non-US citizen, non-US company, arrested outside of US based on a US indictment, being extradited to the US to face US charges.
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A lot of Bitcoin services and exchanges are based out of Russia.

Good luck getting Russia to bend over to America's Patriot Act!
 
Though, if this kind of stuff is going to start happening, I wonder what will happen to services like 'BitInnovate'. They're who I cash out through at the moment.

They're essentially money laundering in American Government eyes.
 
Wonder how this sort of news would impact the business plans and strategies of anyone in the process of setting up new exchanges.
 
goldpelican said:
Wonder how this sort of news would impact the business plans and strategies of anyone in the process of setting up new exchanges.
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They'll do it in places without extradition treaties to the US -_-
 
Well, now unable to withdraw funds from MtGox, It was cheaper than using bit innovate.

US attorney stated
"The global enforcement action we announce today is an important step towards reining in the 'Wild West' of illicit Internet banking. As crime goes increasingly global, the long arm of the law has to get even longer, and in this case, it encircled the earth."
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sounds a bit like a tentacle to me, and sounds like they were not lying when their agent signed up with the account name "tostealeverything"
:lol:
 
US is forcing everyone to accept its toxic USD , any other alternative will be culled.. a lot of forex trader i know is being cut off from their account and have half of their acc confiscated as well...
 
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