What happened with the indictment?

[DianaR]

I don't remember their names, but the fellows who owned E-gold were indicted on several counts, last year.

I am surprised to see that E-gold is still operating, and that people are still brave enough to use it, knowing the government has already popped them for several violations.

What happened?

Did the government end up dropping the charges? Did an offshore bank take over the daily operations?

[id62000]

The chairperson is Douglas Jackson.
The e-gold was down for 2-3 days during the investigatiuons by the secret service and feds. The processor had banned use of e-gold for all illegal sites last year, like investment frauds, charity frauds etc. Feds also charged that E-Gold's owners did not obtain necessary state and federal licenses required of companies that engage in money transmissions and failed to establish an anti-money laundering program required by federal law.

Moreover, the owner said that the illegal transactions were less than 1/100th of 1% of the total volume.

Anyway, they're still fighting the feds everyday, and the merchants who used e-gold still continue to do so as its more reliable that other new processors.

[leonshvip]

To tell the truth, E-Gold tried to applied for a money transmitter license nack in 2002 and 2004, and they were turned down because they did not fit into the likes of PayPal and all that. There is a government issue that is conflicting with each other. One agent said that they are not a money transmitter, and another said they are.

[DianaR]

Well now that I know they are still fighting, I will continue to avoid using them. I don't really want any part of the problems they are dealing with.

[elvenrunelord]

I stopped using egold a long time ago. Paypal suits my needs quite well.

[id62000]

Originally Posted by leonshvip

To tell the truth, E-Gold tried to applied for a money transmitter license nack in 2002 and 2004, and they were turned down because they did not fit into the likes of PayPal and all that. There is a government issue that is conflicting with each other. One agent said that they are not a money transmitter, and another said they are.

That is quiet an understandable dilemma, while e-gold is an e-currency, it does not have any outlet or support any DC/CC so that account holders can actually get their money via e-gold into their bank or house addresses. (There is an exception of the rumoured VMI card, but i believe that is a third party (and not e-gold) accepting e-gols and sending an equivalent amount via a DC to your address.)

But e-gold claims that they will send you an equivalent amount of gold if you have enough balance to request it.

[lktennis55]

yes, I also just stopped using them. It just seemed like too much of a hassle for me.