U.S. Authorities Probe Bitcoin Exchanges Over Illegal Transactions
Several bitcoin exchanges including the now-defunct Mt. Gox received subpoenas from Manhattan federal prosecutors this winter as they look into possible ties between the exchanges and the online drug market Silk Road, the Wall Street Journal reported on Monday, citing people familiar with the matter.
The subpoenas to Mt. Gox demanded customer-transaction logs and materials related to solicitation of investors. The report did not mention any other bitcoin businesses that received subpoenas.
Mt. Gox’s lawyers advised Chief Executive Officer Mark Karpeles against going to the United States after he was summoned by a judge there to testify for a class-action lawsuit, because they were concerned he would be arrested in connection with this case.
The prosecutors and Federal Bureau of Investigation agents are examining whether the exchange and others like it may have processed transactions connected to Silk Road, the people said.