Egold is bankrupt??

I was shoked when i read it
Guy, what's going on?
On July 7, 2008 a voluntary petition regulated by Chapter 7, Bankruptcy Code (Title 11, United States Code) was submitted in respect of E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc. The present petition was submitted voluntarily, i.e. personally by the Chairman of E-gold Douglas Jackson and Director Barry K. Downey.

July 7, 2008 -- On July 7, 2008 a voluntary petition regulated by Chapter 7, Bankruptcy Code (Title 11, United States Code) was submitted in respect of E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc. The present petition was submitted voluntarily, i.e. personally by the Chairman of E-gold Douglas Jackson and Director Barry K. Downey.

Since Chapter 7 of Bankruptcy Code determines the duties of the debtor to notify all the organization creditors of the bankruptcy process in advance, this public utterance targets to inform all the creditors that E-gold Ltd. and Gold & Silver Reserve (G&SR) are not liable for the obligations to the creditors, i.e. the companies are insolvent.

In view of this fact during these coming three days a liquidation proceeding of E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc. will be started. The proceeding will be conducted under the control of the federal governor appointed by the United States District Court for the District of Columbia. The name of the federal governor is not a subject to disclose yet. After the appointment of the governor the whole property of E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc. will be tuned into the bankruptcy assets and will be put out to auction to fulfill the existing liabilities to the creditors. The appointed governor collects the property of the debtor (except the property excluded from the bankruptcy assets and obtained by the debtor after the bankruptcy proceeding began), reduces to money and distributes the collected funds to the creditors following the requirements stated in article 726. Today the property of E-gold is presented by the computers and the office furniture. The registered capital of the company is $20000. All the gold accounts of E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc. Will be arrested during 7 days and then will be studied with the object to legitimacy and legality of the funds in them.

The liquidation proceeding of the legal entities E-gold Ltd. and Gold & Silver
Reserve (G&SR) Inc. will be performed as soon as practicable in accordance with article 704 which states that "the trustee shall collect and reduce to money the property of the estate for which such trustee serves, and close such estate as expeditiously as is compatible with the best interests of parties in interest."

We, Douglas Jackson and Barry K. Downey, announce the possible massive ddos-attacks due to the declared bankruptcy of E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc., hereupon the system may operate unstable.

In accordance with the Chapter 7 of the Bankruptcy Code after the completion of the liquidation proceeding E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc., and thus e-gold will go into liquidation.
http://www.newsguide.us/business/e-c...-announcement/

I was shoched as well

i will trust in the information when i would find the information on their blog!

I do not think this is true... The source of the news is not credible. But if it was true, it would not be very shocking.

Admin

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Originally Posted by Feraldruid

I was shoked when i read it
Guy, what's going on?
On July 7, 2008 a voluntary petition regulated by Chapter 7, Bankruptcy Code (Title 11, United States Code) was submitted in respect of E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc. The present petition was submitted voluntarily, i.e. personally by the Chairman of E-gold Douglas Jackson and Director Barry K. Downey.

July 7, 2008 -- On July 7, 2008 a voluntary petition regulated by Chapter 7, Bankruptcy Code (Title 11, United States Code) was submitted in respect of E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc. The present petition was submitted voluntarily, i.e. personally by the Chairman of E-gold Douglas Jackson and Director Barry K. Downey.

Since Chapter 7 of Bankruptcy Code determines the duties of the debtor to notify all the organization creditors of the bankruptcy process in advance, this public utterance targets to inform all the creditors that E-gold Ltd. and Gold & Silver Reserve (G&SR) are not liable for the obligations to the creditors, i.e. the companies are insolvent.

In view of this fact during these coming three days a liquidation proceeding of E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc. will be started. The proceeding will be conducted under the control of the federal governor appointed by the United States District Court for the District of Columbia. The name of the federal governor is not a subject to disclose yet. After the appointment of the governor the whole property of E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc. will be tuned into the bankruptcy assets and will be put out to auction to fulfill the existing liabilities to the creditors. The appointed governor collects the property of the debtor (except the property excluded from the bankruptcy assets and obtained by the debtor after the bankruptcy proceeding began), reduces to money and distributes the collected funds to the creditors following the requirements stated in article 726. Today the property of E-gold is presented by the computers and the office furniture. The registered capital of the company is $20000. All the gold accounts of E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc. Will be arrested during 7 days and then will be studied with the object to legitimacy and legality of the funds in them.

The liquidation proceeding of the legal entities E-gold Ltd. and Gold & Silver
Reserve (G&SR) Inc. will be performed as soon as practicable in accordance with article 704 which states that "the trustee shall collect and reduce to money the property of the estate for which such trustee serves, and close such estate as expeditiously as is compatible with the best interests of parties in interest."

We, Douglas Jackson and Barry K. Downey, announce the possible massive ddos-attacks due to the declared bankruptcy of E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc., hereupon the system may operate unstable.

In accordance with the Chapter 7 of the Bankruptcy Code after the completion of the liquidation proceeding E-gold Ltd. and Gold & Silver Reserve (G&SR) Inc., and thus e-gold will go into liquidation.
http://www.newsguide.us/business/e-c...-announcement/

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I head that E-Gold is gone. Now E-Gold has big problems.A lot of people loosed their money. I have only one question, Where is the money?

e-Gold Pleads Guilty to Money Laundering
The first digital gold activist now face years and fines when he is sentenced on November 20. Please click HERE to read the article.

Do you think E-gold owners will go to jail? What do you think about E-gold`s future?

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Originally Posted by Intelligence

Do you think E-gold owners will go to jail? What do you think about E-gold`s future?

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Yes, I think they will all go to jail by end of year. The gov. is going to make poster child of scams of e-Gold to scare all the others out of country, if not out of business. Since gov. has pretty much been running e-Gold for years with receiver appointed by judge, and IRS having access to all records, there is no way e-Gold will exist for the bankruptcy and siezure of all assets, never mind the fines would make it impossible to survive in my opinion. The only question I have is I wonder how many will lose money besides owners when IRS comes a knocking?

Good luck to all, Mike

When that day arrives, :waiting: Mike, please add EGold to the annals of ROLClub's Scam thread, with an addition... Indicted, Fined, Jailed...for Laundering as charged, which is worse than just being a scam.

YB.

Its`s a pity. Regrets to all who loosed money.

I do not think this is the end. Well, maybe for criminals. Otherwise, changes are being made for better service. Everything will be back in order once they finish implementing changes, including decent exchange rate, so don't hurry to dump your e-gold.

A New Beginning

Posted by Douglas Jackson on July 21, 2008

November 2008 will mark the 12th anniversary of e-gold's debut as an alternative global payment system enabling Users - individuals or businesses - to receive payment in gold at extremely low cost and without risk of the sort of payment reversals that characterize all credit based systems.

e-gold has been a p i o n e e r in numerous areas and I am proud of its innovative accomplishments. Since 1996, the Internet has witnessed multiple online payment initiatives, several of them funded with $20-90 million of start-up capital, with distinguished founders and e x e c u t ive cadre, high profile b r a n d name strategic allies, and favorable reception in the business press. But whereas Digicash, Cybercash, Beenz, Flooz, Peppercoin and a host of others each was promoted as the next big thing, all of them combined cumulatively [in their original incarnations - some have been restructured into other business models] e x e cuted less transaction volume than e-gold did in a typical single quarter.

But this note is not about success. It is about e-gold's failure to date to emerge, its failure to transition from a marginal player for early adopters to a respected institution integrated into the global financial mainstream. I am talking about a vision that has not yet been realized… and a determination to fix what needs to be improved.

e-gold's failure to emerge so far is a result of many factors but the root causes were design flaws in the account creation and provisioning logic that led to the unfortunate consequence of vulnerability to criminal abuse. Criminal abuse of the e-gold system, in turn, led to a self-reinforcing negative reputation.

Ultimately, criminal abuse of e-gold reached the point where the US Department of Justice intervened, bringing criminal charges against e-gold Ltd., Gold & Silver Reserve., Inc., (the Operator of e-gold and also of the online exchange service OmniPay), myself, and the other directors for violations of 18 USC 1960 [Operation of an unlicensed Money Transmitting Business] and 18 USC 1956 [Conspiracy to Commit Money Laundering]. The criminal case has been resolved. The resolution of the criminal case however provides for a second chance, an opportunity to address the flaws embedded in the e-gold system and to transform the "e-gold Operation" into the institutions I, the other directors, and our long suffering employees and contractors have always envisioned, one that serves to advance the material welfare of mankind.

In harmony with this transformation, we acknowledge that e-gold is indeed a Financial Institution or Agency as defined in US law and should be regulated as a Financial Institution. E-gold Ltd. has submitted an application to FinCEN to be registered as a Money Services Business and will be seeking licensure in all states that require it. Most importantly, working in conjunction with US government agencies, we will be exerting every effort to bring e-gold into compliance with US law and regulation as quickly as possible.

I am going to briefly describe the systemic problems we are undertaking to rectify and a roadmap of where the system is heading. Going from where we are now to where we need to be is going to be a bumpy road, especially at first. Many legitimate e-gold Users have already suffered loss over the past year as the measures undertaken by the government to prevent dissipation of assets have severely impacted exchange markets with resulting illiquidity of a magnitude as to effectively make it impracticable to exchange e-gold for conventional money. There will be more disruption in the next few months but it will be temporary and will set the stage for powerful new features that enhance the usability and global reach of e-gold. If there is a silver lining, it is that the more illiquid e-gold has become, the more valuable it has become due to the (apparently ongoing) decline of the US dollar relative to gold and other non-financial assets.

e-gold User Agreement Changes

Before proceeding, however, let me make something clear that should have been made more emphatically clear long ago. Use of the e-gold system for criminal activity will not be tolerated. Memorializing this resolve, the following provisions are being added to the e-gold Account User Agreement:

2.3. User agrees to not use e-gold in any manner that violates the laws of whatever jurisdiction to which the User is subject.

4.6.1.1. If e-gold investigators reasonably suspect that the e-gold account of User is being used to launder the proceeds of crime or for any other criminal purpose, Issuer may freeze the e-gold account and any other e-gold accounts of User. Additionally, at the sole discretion of Issuer, User will be subject to damages and other penalties, including criminal prosecution where available and the notification of the general public of User’s actions, at the sole discretion of Issuer.

Design flaws in legacy e-gold system

A systemic flaw in the e-gold design, present from the very beginning, made it vexingly difficult for e-gold to expel a User, in a truly effective way, for criminal abuse of the system. e-gold investigative staff might detect suspicious activity, block or freeze the offending account, and later discover the same perpetrator had created additional accounts.

One element was logic that allowed an e-gold account full privileges from the moment of creation and only revoked those privileges in the event of suspicion that the account holder was seeking to mask their identity or actually engage in illicit activity.

Compounding this weakness was an unrestricted ability for Users to create multiple accounts without any obligatory indicator that they were all under the control of one person.

The next generation of the e-gold application will undertake to enforce a "one-human being/one e-gold User" rule. Instead of the existing logic where a User logs directly into an account, a User in the next generation system logs in as a User. Only validated Users are empowered with the ability to create multiple accounts.

The advantage from the cybercrime-thwarting standpoint will be an ever-stronger ability to blacklist a person who has abused the e-gold system.

e-gold is intensively working on this next generation User-based log-in system but it is likely to be another 6-9 months to deployment. Meanwhile, emergency surgery is required NOW.

Shock Therapy phase [may it be brief!]

1) Effective immediately, new e-gold account creation is suspended until a compliant interim solution for Customer Identification can be ensured.

2) We are requesting that autoexchangers - even though the technical beauty of the autoexchanger concept is sublime – cease supporting exchanges to or from e-gold for the time being. The problem with the autoexchanger concept is that although the autoexchangers themselves may be perfectly compliant with requirements [promulgated by Webmoney and e-gold] to automatically put tracking data in their memo fields, and despite the fact that Webmoney is also committed to aiding in the suppression of cybercrime, the fact is that a substantial proportion of the cybercriminals that abuse e-gold have evolved into a modus operandi that involves autoexchanging possible proceeds of crime into Webmoney, sometimes within minutes of receiving the value, thus making interdiction a matter of catch-up or closing the barn door after the horse is gone.

Looking Forward

We are confident that a regulated e-gold rebuilt to a more systematic specification will be less hospitable to criminals, and more attractive to mainstream business use without being less accessible to those disregarded by legacy payment systems.

Please accept our apologies for the occasional turbulence you may experience on this journey. And, as always...

Thank you for using e-gold.

Posted by Douglas Jackson on July 21, 2008

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Originally Posted by John Doe

I do not think this is the end. Well, maybe for criminals. Otherwise, changes are being made for better service. Everything will be back in order once they finish implementing changes, including decent exchange rate, so don't hurry to dump your e-gold.

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I can proof you that you are wrong. If everything was so easy e-gold would be alive. My verdict is that E-gold will be dead, US gov take out all funds and members will get nothing.

I got money on my e-gold account, and i hope they will come back, cause this company is very serious.

Is that true?


Gilli

Why wouldn't it be shocking?

What are you talking about? What shock?

What do you think about gold?