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Virtual Wallet Funds Frozen by FBI
Last month, the two Canadian co-founders of Neteller, the “virtual wallet” payment processor, were charged with racketeering and money laundering. As a result of the charges, trading of Neteller share was suspended, and the FBI froze funds held in Neteller customer accounts. Purportedly, there was a great deal of money frozen in Neteller customer accounts, the vast majority of which involved U.S. customers doing transactions with online gambling websites. Thus, amidst the tough U.S. legislation which practically bans U.S. customers from participating in online gambling websites, Neteller seemingly flourished. Neteller’s “e-wallets” allowed U.S. customers the ability to circumvent credit card blocks on gambling websites. The FBI claimed one of Neteller’s owners, John Lefebvre, also owned a parent company in the U.S., JSL Systems. Lefebvre was able to receive U.S. customer funds through JSL Systems, and transfer those funds to Neteller accounts in Canada.
Neteller released a statement claiming all U.S. customers’ monies had been segregated into separate trust accounts, and would be available for withdrawal on demand. However, since then, all customer withdrawals have been blocked indefinitely. If those monies are treated as evidence for the upcoming trial, and/or proceeds of illegal gambling, it is unclear if customers will ever be able to retrieve their funds.
For additional information, visit:
http://technology.guardian.co.uk/news/story/0,,2006709,00.html