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Online money laundering bust casts light on Bitcoin

Antone Gonsalves | May 31, 2013
Already, an illegal drug site accepts Bitcoins, but experts say it is unlikely to fill the void for cyberiminals left by Liberty Reserve.

In April, the Department of Homeland Security seized the accounts of Bitcoin exchanger Mutum Sigillum LCC, a subsidiary of Mt. Gox. A warrant used in the seizure said the subsidiary was running an unlicensed money service in violation of U.S. law.

Whether cybercriminals can find a way to make Bitcoin more useful remains to be seen. But in the short term, it is unlikely to fill the void left by Liberty Reserve.

"It may take up some of the traffic that Liberty Reserve was handling, but I don't imagine it will be very much," Pascual said.

 

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