US authorities lose patience with e-gold, says the TechWorld headline. The details are rather more ominous, though:
A federal grand jury has indicted online payment provider e-gold and three men on charges of money laundering and conspiracy.
According to a four-count indictment unsealed Friday, Dr. Douglas Jackson, Reid Jackson and Barry Downey, and their company e-gold, transferred funds even though they knew the monies were proceeds of child pornography, credit card fraud and bank fraud.
E-gold carried out these transfers over a six-year period from 1999 to 2005, the government said.
"Criminals of every stripe gravitated to e-gold as a place to move their money with impunity," Jeffrey Taylor, U.S. Attorney for the District of Columbia, said in a statement. "The defendants in this case knowingly allowed them to do so and profited from their crimes."
After the indictment was passed down, federal prosecutors seized funds in 58 e-gold accounts and froze the company's assets. E-gold can continue to operate under government supervision, however, and use existing funds to cash out unaffected accounts.
E-gold, which was founded in 1996, has been a favourite of online scammers because it is completely anonymous, said Ron O'Brien, a senior security analyst at Sophos. E-gold required only an email address to register, and as a digital gold exchange it is not required to perform background checks on users. "E-gold has attracted cybercriminals because of the anonymity," said O'Brien. ....
"It's great that there is punishment doled out for these types of activities," said O'Brien. "But we'll have to see if [this indictment] serves as a deterrent."
And that’s really what this is all about, methinks. With the fedgov hemorrhaging money into Iraq and other black holes, the dollar’s ongoing slide against other funny monies, and other shenanigans, the hunt is on to find “revenue” sources wherever possible. Anonymous digital transfers are a serious threat to the guys at the mints, so the push is on not only to shut down E-Gold, but to scare off anyone considering a similar business.
Recent comments
5 hours 29 min ago
5 hours 43 min ago
23 hours 36 min ago
1 day 17 hours ago
2 days 1 hour ago
2 days 1 hour ago
2 days 1 hour ago
2 days 19 hours ago
2 days 20 hours ago
2 days 20 hours ago