Starting June 15, the Mt. Gox bitcoin exchange will stop allowing funds and withdrawals through the Australian Technocash service, which was recently linked to the $6 billion money-laundering case involving Liberty Reserve.
In a statement released today, Mt. Gox noted it made its decision “after some deliberation and discussion with Technocash.”
“We are working on alternatives for our Australian customers, but in the meantime please use other available methods such as international wire transfers, which are available in your customer accounts,” the statement from Mt. Gox went on to say. “Withdrawals via Technocash will be processed as long as we possibly can, and we will make our best effort to keep this method available.”
In its indictment against Liberty Reserve and the company’s principles, handed down last week, the US federal government identified a number of financial institutions believed to be holding a portion of the $6 billion connected to money laundering charges. They included three accounts at Australia’s Westpac Bank held in the name of Technocash Ltd.
The three Technocash accounts reportedly held nearly $37 million on deposit.
The US indictment also sought forfeitures from bank accounts in Costa Rica, Cyprus, Russia, China, Morocco, Spain and Latvia.
Speaking to The Australian this week, Technocash managing director Paul Monsted said the company’s appearance in the US indictment was “distressing” and “a bit of a hit.”
In a press release issued last week, Technocash stated the following:
“Technocash wishes to make clear that it:
- is a B2B global multi-currency payment system, that offers its business customers a platform to receive, hold and pay in most major international currencies;
- does not have accounts in the name of Liberty Reserve;
- is, and always has, fully complied with Australia’s anti money laundering and compliance regimes, including Austrac reporting; and
- does not have any anonymous transactions or unverified customers. In accordance with its Australian licence requirements, all Technocash accountholders are verified with multi-step procedures to access the full Technocash system.
“Technocash has been assisting authorities in their investigations of the matters raised in the abovementioned article and is committed to continuing its compliance with the requirements of the anti money laundering and compliance legislation in all jurisdictions in which it operates.
Founded in 2000 by Paul Monsted and Raymond Pakalns with the help of an Australian government grant, Technocash enables global, web-based payments in a variety of major currencies.