KYC Dilemma: US Secret Service Seizes $13k from Coinbase Customer

The United States Secret Service (USSS) has seized more than 25 bitcoins from a Coinbase account and seemingly converted them automatically to $13,000 USD, it has emerged.

Also read: Coinbase Integrates PayPal to Broaden its Reach

US Secret Service Seizes Funds

Coinbase PayPalIn an official notification dated today, USSS announced that on June 3 it had taken control of “$13,138.12 in U.S. Currency in Lieu of 25.0001538 Bitcoins from Coinbase Inc.  Account in the Name of Richard P. Underwood.”

No further details were given regarding the circumstances or motives for the assets appropriation. The account holder now has until September 5 to lay claim to his one-time property.

Unusually, the original balance appeared to have been converted into fiat, marking an interesting practice on the part of law enforcement. It is unclear, however, whether this was done in conjunction with Coinbase through its exchange, or separately, and how the funds are now being stored.

The move marks a classic grievance, both for Coinbase users and its critics, who say that regulatory

Read more ... source: TheBitcoinNews