May 11, 2007

US government seizes the gold in frozen acounts

As discussed earlier, the US government, in cases against e-gold and presumably yet-to-be-charged account holders, has apparently completed seizure of some part of the gold:

In an unprecedented move on or just before Wednesday May 9th, 2007, the United States of America has forced Omnipay et al E-gold to redeem all the gold backing the 58 previously frozen accounts owned by e-gold, 1mdc, icegold and a handful of other exchangers and customers to be liquidated effective immediately to a us dollar account owned by the federal government. ...

MoneyNetNews has learned from a reliable source that e-gold has been ordered to hand over a fresh copy of the customer database when the redemption is completed.

Bear in mind this is unconfirmed at this stage. HT-RAH! I'll update this article if anything more comes to hand.

Posted by iang at May 11, 2007 10:34 AM | TrackBack

Interestng e-gold stuff. I warned him. You warned him. Feds only waited this long to let the prize grow.

Posted by: InfoGuardian at May 11, 2007 01:53 PM

[You can read this by signing in to omnipay ...]


OmniPay temporarily suspends exchange to transition to OmniPay Africa

Effective immediately, G&SR will be leasing the OmniPay business to OmniPay Africa. All OmniPay exchanges will now involve e-gold transfers and money payments into/out of OmniPay Africa's e-gold and bank accounts respectively. G&SR has contracted to serve as the Operator of OmniPay but will not be a party to actual exchanges.

In terms of immediate impacts:

* The OmniPay exchange service will suspend operation pending provisioning of a suitable bank account for OmniPay Africa. It is anticipated this service interruption will start May 24, 2007 with service resuming on or about June 18, 2007.
* With resumption, all bank wires from customers must be directed to the new bank coordinates which will be posted on the website.

The original plan was for OmniPay Africa to organize as a licensee of G&SR, the US company that owns OmniPay. A substantial development effort was underway to support the additional requirements for over-the-counter exchange operations such as biometric validation. However, recent actions of the US government, originating from a long-standing and misguided animus on the part of the US Secret Service, necessitate immediate action. Specifically, SEB Bank in Estonia has notified G&SR it is closing its bank account at close of business May 25, 2007 explicitly because of the Press Release from the US DOJ.

We regret the temporary interruption of OmniPay services. Just as the US government's recent actions in seizing e-gold accounts of e-gold Ltd., G&SR, The Bullion Exchange, AnyGoldNow, IceGold, GitGold, The Denver Gold Exchange, GoldPouch Express and 1MDC (and forcing G&SR to liquidate the seized assets!) have severely damaged not only these exchange businesses but also their innumerable customers, their forcing this complex transition to be performed on an emergency basis is simply shameful.

We do not however regret the transfer of OmniPay responsibilities to OmniPay Africa. As will become abundantly clear in coming months, the OmniPay Africa team is highly qualified to guide OmniPay to a higher level, a genuinely global service that will foster a beneficial surge in e-gold's emergence while bringing significant advantages to emerging economies.

Strategic Background

A major strategic emphasis for e-gold is to provide sophisticated remote payments capabilities to the majority of mankind underserved by or excluded by the banking system. An important focus is international remittances - payments from migrant workers living in advanced economies sending a portion of their earnings to their home country. For many developing economies, migrant remittances constitute a significant portion of foreign exchange income and even GDP. Traditional remittance mechanisms, however, are expensive and inflexible. It is estimated that lowering the net cost of remittances by a few percentage points could measurably enhance economic development. There is also increasing awareness that non-traditional banking such as micro-credit facilities can also aid in bootstrapping lesser developed economies.

OmniPay Africa, an entirely non-US company, majority owned by prominent business leaders from the Francophone countries of West Africa, was therefore organized to extend the usefulness of e-gold by providing support for over-the-counter exchange and by fostering the integration of e-gold into micro-credit lending institutions. The combination of e-gold (settling the international transfer of value with no need for a financial intermediary) and OmniPay (offering standardized, reliable, low cost exchange to/from local currency) will serve as a flexible low cost alternative to the traditional systems.

Posted by: omnipay to africa? at May 25, 2007 05:20 AM

No, it is open.

Posted by: [no, it is open] omnipay to Africa? at May 25, 2007 11:29 AM
Post a comment

Remember personal info?

Hit preview to see your comment as it would be displayed.