Department of Homeland Security Bans Dwolla Transfers To or From Mt. Gox

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by dsimmons • 13 years ago

58 13 13 years ago

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malgorithms• 13 years ago

Who here feels their homeland is more secure now?

mindcrime• 13 years ago

No, but I'd feel more secure if DHS was shut down.

maresca• 13 years ago

Doesn't something like this compel people to use bitcoin more rather than less?

aantix• 13 years ago

Until BC is accepted as a maintstream exchange, you need a way to liquidate so that you can actually spend.

I think this dampers the movement, sadly. :(

mjolk• 13 years ago

Yes, the risk of losing your investment of real money and resources becomes more enticing when it's more likely to not work in your favor.

Zmetta• 13 years ago

Dwolla started implementing some policy changes a few weeks ago regarding Mt.Gox which was a pretty good tell about something bigger coming along. I'm glad that I took the opportunity to move my funds away from Dwolla at the time and avoid this mess.

dsimmons2• 13 years ago

This is a big hit to US traders for sure, but there are other ways of transferring money (albeit not as convenient).

Torgo2• 13 years ago

Dwolla was basically free and worked quite fast. International bank transfer took a bit longer but every transfer cost me about 50 dollars in fees. Luckily I got my money out before this. I feel sorry for the people way back in the queue.

I don't blame Dwolla for this at all, but I am tempted to close my account with them to telegraph that I want my financial tools to push back on these kinds of things.

dsimmons2• 13 years ago

Especially considering how much BTC-related money is flowing through Dwolla... it probably makes up a significant portion of their revenue. I have to imagine this is bad news for them as well.

DanBC• 13 years ago

What do you think Dwolla should do when given validly formed court orders?

Which particular Dwolla employee do you think should spend time in jail for contempt of court to satisfy your need for them to push back?

vijayboyapati• 13 years ago

So the outcome looks something like this:

1. holders of dollars at MtGox will buy as many btc as possible and remove them from MtGox, because there's no other escape for their dollars

2. holders of btc at MtGox will presumably send them elsewhere because selling them for dollars doesn't make sense if you can't get the dollars (although perhaps it still makes sense for euros/pounds/yen etc)

3. There is a loss of liquidity at Gox from all the btc being pulled from there

4. The dollar price at other exchanges starts falling because they are still exit points for dollars

Most of the trading volume is in dollars at Gox if I'm not mistaken, so this might be the death blow for them. Although given their history of incompetence, it was kind of sad the network effect was protecting them. Perhaps a phoenix will rise from the ashes.

Department of Homeland Security Bans Dwolla Transfers To or From Mt. Gox

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