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joined:May 21, 2002
A federal grand jury last week indicted the three owners of two companies operating a digital currency business on charges of money laundering, conspiracy, and operating an unlicensed money transmitting business. All three face a maximum sentence of 35 years in prison if found guilty.
The indictment alleges that e-gold has been a "highly favored method of payment by operators of investment scams, credit card and identity fraud, and sellers of online child pornography." The indictment alleges that the defendants conducted fund transfers on behalf of their customers, knowing that the funds involved were the proceeds of unlawful activity; namely child exploitation, credit card fraud, and wire (investment) fraud.
The case is being investigated by the U.S. Secret Service with the assistance of the IRS and the FBI. It is being prosecuted by the U.S. Attorney's Office for the District of Columbia and the Computer Crime and Intellectual Property Section of the Criminal Division.
Hmm... doesn't sound good for e-gold.
They need to know what people are buying so they can tax. (oh, and stop drugs, terrorists, child pornographers, and bake sales.)
joined:Jan 3, 2003
The restraining order, according to the DOJ, does not limit the e-gold company's ability to use its existing funds to satisfy requests to exchange e-gold into national currency for customers of nonseized accounts
Basically, any system has their bad apples. I am sure these fraudsters had bank accounts somewhere, so the banks have been told to release info and freeze assets as well. Only banks are real careful about this information, it will ruin their reputation. Ironically, this article is a praise to eGold.
I must admit I presumed it had to have some kind of hidden scam to be legal and allowed to operate, which is why despite my strong approval of using gold over print-at-will "currency", I've never used Egold.
Now it would appear they were on the level - and had to be closed down.
Don't hold your breath waiting for other banks that "launder" money or ignore illegal activity to be closed.
Wouoldnt have thought it holds much water if the people that own it are clever and cant be found.