Federal agents seized Payza's U.S. bank deposits nearly two years ago, but now documents reveal why: the company and its payment processor OboPay were operating at the center of a criminal investigation.

The Department of Homeland Security froze all funds held by MH Pillars, operating as Payza, when they were deposited with UltraLight FS (doing business as OboPay Inc). The exact amount seized was never disclosed. Neither was any information about what happens next.

Until now.

A Victim Witness Assistance update filed by the U.S. Attorney's Office for the District of Columbia confirms that Homeland Security Investigations and the Washington D.C. Financial Crimes Task Force are running a criminal probe into both companies. U.S. Attorney Channing D. Phillips' office is overseeing the case.

The investigation remains murky on details. But court documents show the DOJ asked a federal judge to freeze civil litigation against Payza and OboPay. The judge agreed, pausing the case until January 22, 2016, suggesting prosecutors needed breathing room to build their criminal case without interference from civil lawsuits.

Those civil filings caught observers off guard. A search of federal court records uncovered only one civil case naming Payza as defendants, and it wasn't filed by U.S. regulators. The status and nature of other civil litigation remains unclear.

What's apparent is the DOJ expects its criminal investigation wrapped up by early 2016. Criminal charges against Payza's management almost certainly follow.

Payza positioned itself as a payment processor for online merchants, but the company had deep roots in the shadiest corners of the internet. It serviced multilevel marketing schemes, Ponzi forums, and other financial fraud operations. Federal prosecutors likely view it the same way they viewed Liberty Reserve, the payment processor they dismantled in 2013.

The parallels are striking. The DOJ's 2013 seizure of Payza's funds probably opened a sealed criminal investigation, much like the coordinated takedown of Liberty Reserve. If history repeats, Payza will cease operating as a payment processor entirely.

That would leave Solid Trust Pay as the main processor still openly serving the MLM underworld. Whether the company faces its own federal investigation remains unknown, though prosecutors' track record suggests it's worth watching.

The investigation into Payza signals federal law enforcement isn't finished cracking down on payment processors that knowingly facilitate fraud. But with new companies constantly emerging to fill the void left by shuttered competitors, the cat-and-mouse game continues.

🤖 Quick Answer

What was the nature of the investigation into Payza and OboPay?
Federal authorities, including Homeland Security Investigations and the Washington D.C. Financial Crimes Task Force, conducted a criminal investigation into both companies. The probe was overseen by U.S. Attorney Channing D. Phillips' office, focusing on their operations and financial activities involving seized deposits.

Why did authorities seize Payza's U.S. bank deposits?
The Department of Homeland Security froze funds held by MH Pillars (operating as Payza) when deposited with UltraLight FS (doing business as OboPay Inc). The seizure occurred as part of the broader criminal investigation into both payment service companies' operations and suspected financial crimes.

When did the seizure of Payza's funds occur?
Federal agents seized Payza's U.S. bank deposits approximately two years before the

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