4 ms·

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 m

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 13y ago
And how many FinCEN forms did you need to send that 30K? That's mostly likely why DHS has shut them down.
- pmorici 13y ago
  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.
  - WhyAmIDead 13y ago
    That's what he's saying. Dwolla / Mt.Gox didn't do their part and now they're paying the price.
  - joezydeco 13y ago
    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 13y ago
I can't believe Dwolla took a 30k risk for $0.25. Their risk management just isn't priced into their fees.
- dusing 13y ago
  It's very slow and they wait until its "in the bank". So the whole business model of Dwolla is low risk.
  - wiredfool 13y ago
    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 13y ago
  What risk? They hold your money for half a week or more.
  - wiredfool 13y ago
    Unauthorized transaction returns can take 60 days. Even with the most iron clad auth agreement, people will still claim that it's unauthorized.
jonathanmarcus 13y ago
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.

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 13y ago

And how many FinCEN forms did you need to send that 30K? That's mostly likely why DHS has shut them down.

pmorici 13y ago
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.
- WhyAmIDead 13y ago
  That's what he's saying. Dwolla / Mt.Gox didn't do their part and now they're paying the price.
- joezydeco 13y ago
  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 13y ago

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

dusing 13y ago
It's very slow and they wait until its "in the bank". So the whole business model of Dwolla is low risk.
- wiredfool 13y ago
  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 13y ago
What risk? They hold your money for half a week or more.
- wiredfool 13y ago
  Unauthorized transaction returns can take 60 days. Even with the most iron clad auth agreement, people will still claim that it's unauthorized.

jonathanmarcus 13y ago

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.