Online Gambling Payment Kingpin Granted Bail

The arrest by United States authorities of Australian national Daniel TzvetkoffJail Sentence on money laundering charges has seen the one-time high-flying payment processor released on bail, pending a trial to be scheduled in New York at a later date. Tzvetkoff’s arrest followed a tip-off to federal authorities that he was attending an online-transactions in Las Vegas, which the former boss of online processor Intabill sought to rebuild a financial empire that came crashing down in 2009.

Tzvetkoff’s Intabill operation, according to the US complaint, was responsible in transferring roughly $540 million in transfers and deposits between US customers and selected US online casino sites. Tzvetkoff, however, was accused by the site’s themselves of absconding with more than $80 million in funds earmarked for payments to customers, funds which were repaid through other means by the sites themselves. Tzvetkoff lived a lavish lifestyle and flaunted his newfound wealth, though Intabill’s meteoric rise to and fall from prominence spanned scarcely more than a year.

Tzvetkoff’s arrest was lauded by US feds as being the first obtained under auspices under the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA), setting the stage for that law’s first legal test when Tzvetkoff’s trial begins. Federal authorities tried to have Tzvetkoff’s bail revoked on the grounds that Tzvetkoff posed a flight risk, though his family pledged his $1.2 million home in Brisbane, Australia for his release. Nonetheless, US immigration authorities filed an extra detainment motion against Tzvetkoff, leaving him behind bars until that matter is resolved. Even when released, Tzvetkoff will have surrendered his passport and be subject to constant electronic monitoring as he awaits his trial.

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