Yeah, take a real close look at that case, and read about what Dwolla did to Tradehill. Read both sides, Dwolla's and Tradehills. Believe me, Dwolla doesn't come out looking too good. Dwolla rode Tradehill and Bitcoin to viability and prosperity, then turned around and destroyed Tradehill when they started getting some negative press about Bitcoin. It's too bad, because I was an avid Dwolla user and was impressed with their approach to technology.

But this is my biased opinion as a Bitcoin user (and former Dwolla user). Please go read about it yourself. Perhaps others will come to a different conclusion.

Anyone that is thinking about using Dwolla needs to read about this incident and understand what happened. Dwolla was completely unable to understand or handle the fraud. In addition, they are in total denial that the only reason anyone cares about them is because MtGox (a bitcoin exchange) uses them and brings lots of volume to their platform.

I run Bitfloor and was hit with similar fraud as Tradehill (on a much much smaller scale) and Dwolla was just as ignorant and dismissive of it. Fundamentally, they went into a business that they did not understand. I know this to be true because early on (even before any Tradehill incident) we emailed them to ask about ACH chargebacks and how they handle them. They claimed there were no chargebacks and this was everything I needed to know about their lack of understanding.