NETeller Points to Fund Seizures as Source of Payment Delays to US Customers

LONDON – As reported by Reuters: "British payment processor NETeller said Thursday U.S. prosecutors had seized funds, stopping U.S. customers from accessing their money, the latest move
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"NETeller, which quit the United States last month after authorities arrested its two founders, said it was cooperating with an investigation by the U.S. Attorney's Office (USAO) for the Southern District of New York.

"'The amount of funds seized by the USAO or otherwise restricted by third parties does not exceed $55 million,' said NETeller, which abandoned 65 percent of its business by quitting the United States.

"'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,' said NETeller.

"The FBI and U.S. Attorney's Office were not immediately available. A recent article in USA Today quoted FBI Agent Neil Donovan saying funds from NETeller are being held in court as potential evidence. Some customers may get their money back, he was quoted as saying, but did not provide a timetable.

"….'U.S. customers wishing to withdraw funds from their NETeller e-wallet accounts will experience ongoing delays,' said the group.

"'The return of funds to our U.S. customers is a top priority for NETeller,' said Chief Executive Ron Martin.

"NETeller requested its shares be suspended in January, just after the arrests. The two founders are scheduled to attend a New York court hearing on Feb. 14.