Ars Technica reports on the finer details of how the government was able to seize a bunch of cash from Mt. Gox, the world’s largest Bitcoin exchange.
Homeland Security says it had probable cause to believe that Mt. Gox is guilty of money transmitting without a license. Companies like PayPal and Western Union have this license, but Mt. Gox does not.
Punishment for money transmitting without a license is a fine or a maximum of five years in jail.