Online payment processor NETeller announced officially the U.S. Attorney's Office (USAO) for the Southern District of New York has seized funds for their investigation. They've indicated, however, "to the best of their knowledge," the amount is less than $55 million.
The following comes from a statement released by NETeller today:
"...the group has been advised that the USAO has obtained court-ordered seizure warrants seizing funds pertaining to the group's transactions. To the best of the group's knowledge, it believes that the amount of funds seized by the USAO or otherwise restricted by third parties does not exceed U.S. $55 million.
"These funds were largely in the process of being transferred from the group to its U.S. customers or vice versa. As a result of the restrictions placed by third parties, court-ordered seizures, and related legal concerns, the group is currently unable to make payments to U.S. customers."
Ron Martin, group president and CEO, however insisted "The return of funds to our U.S. customers is a top priority for NETeller," and said negotiations with the USAO are underway for managing the return.
Further updates will then be provided once repayment mechanisms have been solidified.
No charges against the company, to their knowledge, have been laid since the arrest of founders John Lefevbre and Stephen Lawrence on Jan. 16, and the release indicated the company has sufficient working capital to fund all its customers' balances and the ongoing requirements of the business.
The two founders are scheduled for another court hearing Feb. 14.