The Hawaii Dala, an alternative currency launched here in August, was one of the targets of a raid by federal agents on the Indiana headquarters of the group that promotes Liberty Dollars, a court warrant indicates.

But Bernard von NotHaus, the architect of both currencies and former mintmaster at the Royal Hawaiian Mint, says the two are completely different. He says holders of Hawaii Dalas have nothing to worry about.

He also insists there is nothing illegal about the Liberty Dollar, but is battling the government in court over the issue.

The FBI warrant for the Indiana raid on Thursday listed the Hawaii Dala among the items forfeitable to the U.S. under laws which govern money laundering, mail fraud and wire fraud.

Pat Breeden, chief executive of Royal Hawaiian Heritage Jewelry, one of only a handful of distributors Hawaii Dalas here, says the coins are more of a collector’s item than a true currency. He said yesterday he has had no contact from federal agents.

Hawaii Dalas were minted as silver coins in denominations of $20, $10 and $5, along with a $1 Hawaii Dala silver certificate. von NotHaus could not say how many Hawaii Dalas were currently in circulation, but estimated the total amount to be in the thousands. Read Full Story