[jonathanmarcus]

According to Aaron Greenspan in his recent lawsuit "a vast sum, if not the majority, of Dwolla’s transaction volume is the result of Bitcoin speculation."

So it should be interesting to see what impact this has on Dwolla's business.

[sachingulaya]

Considering it cost me exactly $0.25 to send $30,000 to mtgox through Dwolla I imagine the impact is minimal.

Although, now that I have a Dwolla account I am more likely to use it in the future.

[joezydeco]

And how many FinCEN forms did you need to send that 30K?

That's mostly likely why DHS has shut them down.

[pmorici]

Wouldn't it be the responsibility of Mt.Gox and Dwolla to submit the required forms? Unless you are saying you think having money in Mt.Gox qualifies as a foreign account and he should have filed an FBAR.

[joezydeco]

Isn't Mt. Gox a japanese entity?

I'm not a financial expert by any means but it's pretty clear when you're moving cash to Mt. Gox, you're moving it out of the country. And I think the paperwork is a joint responsibility.

[wiredfool]

I can't believe Dwolla took a 30k risk for $0.25. Their risk management just isn't priced into their fees.

[dusing]

It's very slow and they wait until its "in the bank". So the whole business model of Dwolla is low risk.

[wiredfool]

If they do ACH, it's never really settled, it just hasn't returned yet. Some classes of returns are limited to 3 days, some 60, and some can be clawed back a year later.

Their proprietary exchange might have different rules, but iirc, it's not very widely distributed yet.

[fnordfnordfnord]

What risk? They hold your money for half a week or more.

[wiredfool]

Unauthorized transaction returns can take 60 days. Even with the most iron clad auth agreement, people will still claim that it's unauthorized.

[jonathanmarcus]

The main impact will be on their gross processing volume, which is in some respects a vanity metric because of their pricing model. Revenue will be impacted, but as your example illustrates, not directly or proportionately.