The Guardian in the United Kingdom is reporting that the FBI has frozen accounts held by U.S. customers at NETeller. The e-wallet company had already stopped allowing U.S. customers to make transactions with online gambling companies, and now the accounts are frozen as evidence.
The frozen accounts are part of the U.S. Department of Justice's case against NETellers two founders, Stephen Lawrence and John Lefebvre.
The two men were arrested last month and charged with conspiring to transfer funds with the intent to promote illegal gambling.
Not long after the arrests, NETeller announced that it would no longer allow U.S. customers to use their accounts for online gambling. At the time, customers still had access to their funds.
Initially NETeller had announced to the stock exchange that "the funds of U.S. resident customers are held in segregated trust accounts and are fully secure and will be available for withdrawal by customers on demand."
Now the Web site for the company is advising customers that all withdrawals have been blocked and the funds are being maintained in trust on the customers' behalf while NETeller works to resolve the issues.
NETeller has not disclosed how much money has been frozen and has refused to disclose or confirm any details of the freeze, as has a spokesperson from the Department of Justice.