In what seems to be the government’s latest attack on private transactions between individuals, the Department of Homeland Security has shut down funds transfers operated by mobile processing platform Dwolla, which is responsible for managing transfers for the BitCoin digital currency exchange.

 

Details are still sparse, but a spokesperson for U.S. Immigration and Customs Enforcement (ICE) confirms that an investigation is in progress and Dwolla is no longer able to accept currency transfers for its customers.

 

The U.S. Department of Homeland Security confirmed it has initiated legal action that prompted the Dwolla payment service to stop processing bitcoin transactions.

Nicole Navas, a spokesperson for U.S. Immigration and Customs Enforcement, confirmed the legal action to CNET this afternoon.