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Wall Street Journal Feature: Daniel Kelman's Investigations into Mt.Gox

“It was an uncomfortable moment. Mr. Nilsson got into bitcoin in part to get away from regulators. “There is a stigma about the IRS, obviously, in the kind of circles I move in,” he says. “The taxman isn’t the most appreciated entity.”

But Messrs. Kelman and Nilsson thought the U.S. government—with its broad reach and superior funding and technology—might be able to help.

Instead, “it was like a one-way street,” Mr. Kelman says. “We gave them everything.” Mr. Alford offered nothing but the assurance that “you guys are on the right track,” Mr. Kelman says.”

Zachary Kelman