e-Gold goes down for money laundering
 

"The three owners of Internet currency service e-gold have pled guilty to money laundering in the U.S. District Court for D.C.. The service is based in the West Indies, but the directors apparently live in Florida. They haven't been sentenced yet, but potentially face decades in prison and millions in fines. In addition, the principal director posted a blog entry yesterday saying that 'criminal activity will not be tolerated,' and pledging to eliminate the loopholes that allowed money laundering to thrive on the service. He also claims that e-gold has more transaction volume in a single quarter than all of the first-generation Web currency services like Cybercash, Beenz, and Flooz completed over their lifetimes. Ironically, one of the reasons that contributed to Flooz's demise in 2001 was rampant money laundering."

http://yro.slashdot.org/article.pl?sid=08/07/22/1434246

Why is there site still operating?

Money laundering to the Feds could be something as simple as a spammer getting paid via e-gold or large amounts of people using the service to not pay taxes. ie.. pretty much the same thing that happens with any web payment systems.

I don't trust any "catchy" charges the Feds use anymore because they pull the same shit in adult convictions..it's no longer what you may or may not be guilty of.. it's what they can toss at you and make stick.

e-Gold was be good service :(

I'm surprised it took this long.

That explain why exchange rates for egold now are 50%

Major mistake ... The only good thing for them about Florida is that their house is untouchable ....

No surprise.

Yep, exactly. Just the gov't trying to enforce its new world order over the online payment sector as well. A few giants like paypal will be allowed to remain, but just as with the banking sector they'll turn it into what is essentially a locked up system with a few untouchable players who are willing to bend over for the government whilst raping their customers. :thumbsup

why are they in trouble though? what do they do that epassporte doesnt do?

not really that surprising

Lived in Florida...

RIP egold.

Hate to say this, but that is in regular criminal law as well. All day every day. Its really sad that there is NO Recourse against it either.

It's not over yet.

they had/have the word 'gold' in their company name :winkwink:

i alwys thought people who wnted to be paid in e-gold to be shady

Your primary homestead and your primary vehicle are untouchable in Florida... in civil actions. The reasoning being that a home and a way to get to work are essentially human rights.

Your homestead is fair game to the Federal government. This includes the IRS, DEA, FBI, etc etc.

If your homestead was purchased with the proceeds from criminal activities it can be seized. If they purchased their homestead BEFORE e-Gold profits then it is fine (usually)... If they purchased the homestead with the proceeds from e-Gold, which is linked to money laundering, it is gone.

Couldn't care less. Never used them before.

"The three owners of Internet currency service e-gold have pled guilty to money laundering"

people dont plead guilty when they're not. e-gold is one of the biggest places to transact shady money.

they are getting what they deserve. i've seen so many sites selling blockbuster bootlegs of hollywood movies and charging in e-gold.

i dont feel sorry for them in the slighest.

:2 cents:

Oh, yes, they do. There are thousands of people in jail who pled guilty while they weren't, just because the state attorney was going to ask for the death penalty or life in prison if they went to trial, and offered them a few years in jail if they didn't fight it. It's not about how guilty you are, but how guilty they can make you look in front of a jury.