My guess? They had two avenues to get local cash into the system, CapitalOne P2P and Bank of America (LocalTill, LLC). By taking cash, LocalTill, LLC would be r

My guess? They had two avenues to get local cash into the system, CapitalOne P2P and Bank of America (LocalTill, LLC). By taking cash, LocalTill, LLC would be required to be registered as a money transmitter in NY State (as well as the token FinCEN registration). They almost definitely were not, so once identified or threatened, they probably closed up shop, closing off that route of funds. If the exchange's bank account was also with BoA, they could have easily identified that and decided they didn't want to be a part and would close it. Something similar could have happened at CapitalOne if the P2P TOS were being violated in some way. edit: For those that don't know how LocalTill operates -- The merchant would forward a "deposit" to LocalTill and one would be instructed to deposit a dollar amount plus a processing fee with a unique # of cents to LocalTill's BoA bank account. Upon electronic notification that the amount was received, LocalTill would send the money minus their fee on to the business which set up the transaction.