Comments: e-gold founders indicted

It will be interesting to see how this develops. Personally, I am not sure the "money transmitting" charge as solid as you argue:

"Is e-gold more or less in the money transmitting business? A reasonable man will say yes."

Could a resonable man be pursuaded that E-Gold's intent was to provide an investment opportunity as then they would be in the investment business? They could also argue that if one was to judge that they are in "money transmitting" business, the same judgement should be applied to a number of online gaming companies that issue "virtual currency", e.g. Tencent and their QQ currency that allows Chineese users all over the world to send money back home.

Posted by Igor Drokov at April 28, 2007 02:23 PM

They could beat the charge by claiming that they held gold for clients and those client exchanged gold between each other and used e-Gold as a settlement service. This argument would avoid any issue with securities or money in that every user elected e-gold as the repository and settlement service rather than as a broker. This fine argument could be made by altering the user agreement and the terms of service. If one wanted to further this argument e-gold could issue a special class of membership or security to attest to this fact and make it a user owned organization operating as a non-profit similar in nature to a co-operative. Most these arguments will not be adopted by the pompous ass of a man Douglas Jackson it does not placate his need for esteem. Douglas Jackson is an insane twerp that thinks there is virtue in abusing women and those weaker, he is a bully. In this case he will do what all bullys do when confronted with a stronger force run, hide, steal and pilfer the account holders hoping to find a jurisdiction that will not turn him in. I suggest Cuba but the price tag for accepting American criminals has gone up I only hope he steal enough to pay the bill to Fidel.
Maybe King Douglas and his merry band will find relegion and re-organize as a money transfer agent.

Posted by MM? at April 28, 2007 03:40 PM

You're obviously much better informed about this than I, but the story I heard (some time ago) was that e-gold looked into obtaining a license but were rebuffed by the licensing officials because they were not considered a money transmitting business.

Posted by Ray at April 30, 2007 05:02 AM

Ray, you may be right, and I may be wrong. Here's what Douglas Jackson apparently said in a press release just seen:

==============
At the hearing, G&SR described its ongoing dialog with the Department of Treasury, initiated by formal request of the company in Spring 2005, to determine a possible basis for regulating the company's activities, since it was patently clear to competent authorities that G&SR's exchange service was not encompassed within any existing regulatory rubric [subsequently re-confirmed by experts at the Federal Reserve].
===============

Posted by Iang at April 30, 2007 04:50 PM

I have $100 in egold, some guy in the DC area gave it to me around 5 years ago, for no reason I could figure out...

Should I try to get it out of there? or will I get arrested for tax evasion, terrorism, and money laundering? I think I tried to transfer it to you, or somebody? a couple years ago...

Posted by We're all criminals now... at May 3, 2007 01:22 PM

Richard Field, an attorney and consultant in payment systems law, called the government's investigation of E-Gold "unusually intense."

"I haven't seen this level of focus or attention on other payment systems before," Field said. "This aggressive action against E-Gold appears to be intended to send a signal to others as well that you're responsible for setting up your system in a way that does not enable this kind of activity."

Posted by Washington Post... at May 5, 2007 08:32 AM

C'mon Folks!! This is already the 4th Reich. The Third had fallen on May 9, 1945. Will this Fourth One fair much better?

From the bureaucrat's point of view, each and everyone of us is a potential launderer, whose bills are not directly seen, or even paid by the IRS itself, from an IRS controlled "Trust" account. Oh, yes, and a child molester, tax cheat, homophobic, gay basher, internet sex predator, and whatever else the politically correct battle cry "de jour" of our sacred (ex)republic may be. Does the word "Trust" account bring up the sweet thoughts on the Social Security "Trust" account in you? What proportion of TRUST is there deposited in Social Security, as opposed to the amount of REAL MONEY? They don't even promise the existence of real money as a backing. After all, the US Dollar has "only" lost roughly 40% of its value in foreign exchange in the past 5-6 years. When that happens in Thailand or Eastern Europe, Bloomberg TV screams of a local currency crisis.

Bureaucrats cannot exist peacefully alongside such a payment system. It gives just WAY TOO MUCH POWER to the INDIVIDUAL sheep in the flock, that they see themselves as owners and shepherds of. Sheering time is just upon us Folks and e-gold has grown exceptionally long, good quality wool during the past ten years. I wonder actually, how many days it's going to take for the usual busybodies, the UK and the EU to hand down similar indictments against operators in their cross hairs.

What kind of government are you giving us Mr. Franklin?
- "A Republic. If you can keep it!"

Winston

Posted by Winston at May 11, 2007 05:03 PM

The worldwide banking industry makes almost 3% on all spending (Since most is by Debit or Credit Cards)and they justify 30% interest rates on credit card ballances in the name of protection of purchasers/chargebacks.

An online payment system (like egold) where the payments are non reversable and outside the control of the Banks must not be allowed to succeed as they are major competitor to their bread and butter. The American Bankers Association nor the Consumer Protection people certainly wont come to eGold's defense. (In fact I wonder wht part the banking industry jad in this?) Let's hope the Securities industry and the Retail Industry wake up and realize just how much this will affect our future business dealings.

Take all the allegations against eGold and replace egold with the word Cash - all the misuse of the egold system can be also said for cash transactions yet I don't see them going after the Secy of Treasury for supporting child pornography or drug sales by allowing people to purchase with cash.

Infact cash transactions are being demonized. Go try to purchase a car or TV for $3000 and try to pay with cash and see how many watch lists you get on. As the noose gets tighter what is the future of cash?

Full tracability by electronic payments that are fully tracable and trackable is the only thing that will satisfy the powers that be today (And the banking industry gets 3% of it). eGold was becoming far too popular and had to be brought down.

eGold is an idea whose time has come and you can't squash ideas. There are many other alternatives in the marketplace ready to flood into the vacuum created by the Fed's takedown of eGold.(Webmoney.com is one and located in Russia.)

Let's hope Dr Jackson prevails and eGold survives this injustice.

Posted by Pat Pat at May 14, 2007 07:16 PM
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