Department of Justice freezes $9.25 million

Online payment processor Citadel Commerce has revealed $9.25 million in funds belonging to its online gambling merchants has been frozen by the U.S. Department of Justice.

Elaborating on an earlier release, which simply announced an indeterminate amount of funds had been seized, the Burnaby, B.C.-based Citadel, a subsidiary of ESI Entertainment Systems Inc., has now set the figure at $9.25 million.

"All of these funds are Merchants' Reserves related to Internet gaming," the company said in a statement released May 14, "except for approximately $941,000 of Citadel's own capital."

"The company is continuing to work with the Department of Justice through its legal counsel to resolve the situation."

Citadel is the latest in a string of online payment processors targeted by the Department of Justice since the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA) in October 2006.

The company had, however, ceased taking online gambling transactions from U.S. customers in January.

Citadel also recently announced they are moving their operations from B.C. to Malta.

courtesy of Christopher Hunt

News Added: 21 May, 2007

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