U.S. DOJ seizes $9.25 million of gambling processor Citadel Commerce

[The Judge]

Online payment processor Citadel Commerce revealed that the U.S. Department of Justice seized $9.25 million of online gambling merchants' reserve funds.

The announcement comes after a first warning Citadel issued in April. The online payment solution said that one of their financial processors had frozen funds belonging to some of Citadel commerce online gambling merchants.

Citadel commerce also said that $941,000 of funds seized by the Department of Justice is the company's own capital.

“The company is continuing to work with the DOJ through its legal counsel to resolve the situation.” The online payment processor said in a statement to the Canadian Stock Exchange.

TOW Industry Newswire
Source: Gaming Intelligence Group
Published May 18 2007 - 4.30 am EST
TheOnlinewire.com




I have heard from a reliable offshore source that InstaDebit has also had funds seized by the DOJ and that there are indictments pending against both processors. Internet gambling companies that do business with these types of payment processors have to put up an escrow account which is adjusted quarterly. The seizures by the DOJ include these escrow accounts and have put several offshore books in a financial bind.

[Chicago RED]

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