Feeds

Citadel, FirePay asset seizures pay out for the DOJ

DOJ approaches climax with UIGEA in wings

Secure remote control for conventional and virtual desktops

House of Cards The US Department of Justice (DOJ) continued its orgy of online gambling asset seizures this week, issuing seizure warrants for $9.25 mil from Citadel Commerce and $4.2 mil from FirePay.

Both companies are Canadian, and neither is currently taking money from American gamblers. The fact that both companies have already withdrawn from the US market, at least as far as servicing the online gambling world goes, is irrelevant for the DOJ. Criminal statutes of limitations being what they are in the US, people all over the globe could well find themselves in hot water for years with American authorities.

The Citadel funds had originally been frozen late last month at the behest of some of its payment processors, the company had let out then in an unusually brief and uninformative press release, but the DOJ took it one step further this week by formally taking control of the funds in question.

This is the latest in a string of DOJ legal actions against the rather murky payment processing segment of the internet gambling industry, and, if nothing else, it demonstrates a renewed determination on the part of the DOJ to prosecute those connected to the online gambling world in the face of mounting criticism at home. Although two online gambling bills have been introduced in Congress the last few weeks – one by Rep. Barney Frank seeking outright repeal and regulation, and one by Rep. Berkley proposing a year-long study of the industry – the prohibitionist instinct at the DOJ appears to be alive and kicking.

Of course, as anyone who follows the DOJ knows, federal investigations take their sweet time producing fruit, and the DOJ typically does not just drop investigations; there could be any number still in the pipeline, ripening up. The busts in Utah last week are just a fragment of far-flung prosecutorial activity that will keep a small army of white-collar law and order types in cozy desk jobs for years to come.

Neteller, Citadel, FirePay, CurrenC – these are in the run up to the UIGEA, which actually takes effect next month.

Even the DOJ knows this: whatever happens then, illicit payment processing will go on, and the cat and mouse game between the processors and the DOJ will continue.®

Burke Hansen, attorney at large, heads a San Francisco law office

Build a business case: developing custom apps

More from The Register

next story
Munich considers dumping Linux for ... GULP ... Windows!
Give a penguinista a hug, the Outlook's not good for open source's poster child
Yes, but what are your plans if a DRAGON attacks?
Local UK gov outs most ridiculous FoI requests...
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Govt control? Hah! It's IMPOSSIBLE to have a successful command economy
Even Moore's Law can't help the architects of statism now
Detroit losing MILLIONS because it buys CHEAP BATTERIES – report
Man at hardware store was right: name brands DO last longer
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
This'll end well: US govt says car-to-car jibber-jabber will SAVE lives
Department of Transportation starts cogs turning for another wireless comms standard
New voting rules leave innocent Brits at risk of SPAM TSUNAMI
Read the paperwork very carefully - or fall victim to marketing shysters
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.