Thread: Be caution in using e-gold

Thanks, PG

I'll give it a try. If you don't hear back from me, it means this dumb guy from Texas got it done.

I appreciate you taking the time to help.

Lloyd

GOTTER DONE!!! Thanks again PG

Two big programmes already cancelled taking egold.Seems more are considering the same.

http://www.nevisfinance.com/Announce...?Idz=4&MIdz=36
Business Week article revealing that on the evening of Dec. 19, agents with theFederal Bureau of Investigation and Secret Service raided the Melbourne (Fla.)office of E-GOLD's parent company, Gold & Silver Reserve Inc., and thenearby home of its founder, Douglas L. Jackson. Agents copied documents andcomputer files, but so far no charges have been brought. The Secret Service andthe FBI declined to comment on the raid. Jackson has denied any wrongdoing,though the raid isn't the first indication that federal investigators viewE-GOLD as a magnet for online misdeeds. The FBI separately is pursuing about adozen probes in which E-GOLD appears as a "common denominator," asenior agent says. The full Business Week article has been posted on severalonline forums: http://goldenrocks.com/forum/viewtopic.php?t=3368

there's a letter posted at egold's homepage explaining some things. better than nothing... i tend to agree with much of it - because of the source of the problem; the feds just want to shut everything down (that does'nt cater to select groups etc).

Letter from Dr. Douglas Jackson; Chairman, e-gold, Ltd.

e-gold® has recently been the subject of a slanderous and unfounded article in Business Week. e-gold strongly refutes the allegations and presumptions of this article. The article chose to focus through anecdote and suspicion only on an exception - criminal abuse - and ignores the overwhelming majority of e-gold usage. It also fails to note that all online payment mechanisms including credit cards and intermediaries such as PayPal are targeted by criminals, likely at a much greater magnitude than e-gold, and fails to relate the very proactive steps e-gold takes to eliminate any criminal behavior involving e-gold.

e-gold and its Operator, Gold & Silver Reserve (G&SR®), including G&SR's exchange service OmniPay® in cooperation with the United States Government and pursuant to a lawfully issued written request, did allow an examination of the e-gold and OmniPay computer systems and data. The examination occurred on December 16th after normal business hours so as to avoid disrupting access to the system. The examination utilized the full resources of e-gold's system and prevented customer access. We were told by the government examiners that the outage would be for a few hours, however, due to the volume of data maintained by e-gold for its customers' protection, a surprise to the examiners, the examination occupied e-gold's computing capacity for 36 hours. e-gold apologizes for any inconvenience of the system down time caused by the government's request. No charges have been filed against e-gold, G&SR, OmniPay or any of its principals.

e-gold operates legally and does not condone persons attempting to use e-gold for criminal activity. e-gold has a long history of cooperation with law enforcement agencies in the US and worldwide, providing data and investigative assistance in response to lawful requests.

I'm proud of what we have accomplished so far with e-gold. e-gold, now in its 10th year online, is growing exponentially because of a network effect, a global cascade of Users telling their friends who then tell their friends. For the first time since our launch in 1996, this growth is providing the revenue and resources needed for e-gold to accelerate technical development and other refinements to make it more reliable and even less hospitable to those who would seek to abuse it.

We are processing the same volume of transactions and growing at the same exponential pace that PayPal was in the second quarter of 2000. One difference, though, is that they had to give away $tens of millions of their investors' money to build a critical mass of user balances and were continuing a burn rate of about $10 million per month during this period. Altogether they burned through about $275 million of capital losses before their IPO.

e-gold, in contrast, lacking significant outside investment:

has attained a circulation larger than Canada 's official gold reserves (currently 3.46 metric tonnes of gold, equivalent to about $55 million at current exchange rates).
has web traffic surpassing etrade.com and citi.com and is neck and neck with kitco.com as the most heavily trafficked gold related site on the Web
settles 50 to 60 thousand user-to-user payments per day, a daily value of about $10 million
has active Users in every country, (including more than 150,000 in China ) despite our lack so far of foreign language versions - a high priority on our to-do list
e-gold is the only payment mechanism that is truly global, enabling any merchant to accept payment online even if the payer lives in a third world country, has no credit card, or is perhaps 'unbanked' altogether.

e-gold enables the migrant worker of modest means to send value back to his family in Mexico or Bangladesh at a fraction of the cost of conventional international remittance mechanisms. e-gold alone is free of chargeback risk, yet the fee for receiving payment in e-gold is a tiny fraction of those charged by any other systems.

Thanks to e-gold, for the first time in history, normal people of modest means worldwide have the option of using currency that is designed from the ground up to be immune to debasement, with a governance model that precludes even its management and founders from having the power to subvert it.

Gold & Silver Reserve has been operating for over nine years. Seeking to comply with every applicable law, G&SR has reached out to the Government dozens of times, has repeatedly met with officials from the Internal Revenue Service, the FBI, SEC and a variety of other Federal agencies, and has been told – in no uncertain terms – that we were operating legally and in full compliance with all laws, rules and regulations. Additionally, the Government has requested from us – on more than three hundred occasions – information regarding individuals it believed to be lawbreakers. Gold & Silver Reserve complied with every single request in a professional and timely fashion. Numerous Government officials have gone so far as to commend us in writing for our efforts in complying with their requests and aiding them in their investigations.

Very recently, however, the Government concluded that it was unable to “regulate” our business under any current statutes or regulations. Rather than moving Congress to enact legislation, the Government apparently chose to undertake to regulate us under pre-existing statutes which are totally and utterly inapplicable to our business. To do so, the case the Government brought against Gold & Silver Reserve centered around false statements and fabrications made to a Magistrate Judge in Washington , D.C. A week later, when challenged by that Judge, the Government, fearing it would lose its case filed a second suit against Gold & Silver Reserve. We are now addressing that action and are confident that we will be victorious in a very short time.

Both OmniPay and e-gold have been substantially harmed. Both sites were off-line altogether for 36 hours - an interval during which we were at a loss to know what to announce or even how to announce it. There were other direct interventions as well that I am not yet at liberty to discuss that nearly crippled OmniPay's ability to honor its obligations to and on behalf of users. The worst effect of course is on our reputation. This irresponsible smear piece will surely impair our efforts to build strategic relationships with the host of businesses and individuals that would benefit from an embrace of e-gold.

Let me be very clear. e-gold in no manner condones persons or organizations attempting to use e-gold to support criminal acts. The exact opposite is true. e-gold limits accounts that are suspect of illicit activity and has a long history of cooperation with law enforcement agencies.

There are two elements that make e-gold about the dumbest choice a criminal could make if seeking to obfuscate a money trail or otherwise hide the proceeds of crime.

it is impossible for a general user of e-gold to send/add money (value in any form) into the system... he can only get e-gold by receiving an e-gold Spend from someone who already has some.
there's a permanent record of all transfers, that is, a permanent record of the entire lineage of every particle of value in the e-gold system.
There is nothing "anonymous and untraceable" about e-gold. e-gold Spends settle by book entry - it isn't so-called "digital cash".

e-gold is not about crime. e-gold is not a hospitable environment for criminals. e-gold maintains an efficient and highly capable investigative staff to aid in the identification, apprehension and prosecution of any criminal abusing the system. Our staff has participated in hundreds of investigations supporting the FBI, FTC, IRS, DEA, SEC, USPS, and others. This is the reality of every payment system, the need to aid in rooting out criminal abuse, whether it is child pornographers taking advantage of the multiple layers and indirection of credit card middlemen, or smurfs aggregating cash via international remittance processors or even state lotteries.

e-gold has taken a proactive approach, reaching out to law enforcement agencies and NGO's (Non-Governmental Organization) to foster closer cooperation in combating crime online. For example, e-gold is a charter member of the Financial Coalition to eradicate Child Pornography, organized by the National Center for Missing and Exploited Children, along with Visa, MasterCard, Microsoft, AOL, PayPal, First Data and some of the major banks.

I hope to have additional and useful facts shortly and will communicate them when appropriate. I can assure you e-gold is up and running, supporting its customers, and continuing to grow.

Dr. Douglas Jackson

posted 6 January 2006

Letter from Dr. Douglas Jackson; Chairman, e-gold, Ltd.
http://www.e-gold.com/letter.html

This is from LondonGoldExchange, a well respected and established Exchanger


e-gold Panic Selling

Due to market conditions created by rumours on forums and general hearsay because of a recent magazine article, there has been a huge bout of panic selling of e-gold. This has created a huge backlog of orders for us (especially UK) and subsequently to slow the flow we have to put our fees up to 3%. This is a temporary measure aimed to slow the pace of sell traffic.

We stress that we are trading with e-gold normally and continue to support it as our No.1 Digital Currency. People are buying e-gold at an increasing rate too, so not everyone is panicking. e-gold is not like INTGold and one should not compare the issues that have been happening. There were months of trouble with lots of tangible evidence of suspicious activity with INTGold. With e-gold there has been a damaging magazine article and an FBI raid. e-gold were trading as normal the next day and Omnipay were accepting In and Out Exchanges (Buy and Sell) and fulfilling them as they have been doing for years. There is real gold in vaults in locations around the world backing up the currency, INTGold had nothing.

Please think again if you are worried and just want to ’leave’ the e-gold system. The recent Business Week article was biased and just plain bad reporting. There was no comparison to how Credit Cards are used in crime, or nothing about the use of cash or Western Union or even banks for money laundering. The report was trash and has damaged the reputation of e-gold, but the industry will get over it and continue its massive growth.
So, to recap, please do not panic sell, there is no need. Of course we will accept your e-gold if you do want to sell as we have no problem taking it because we are confident that we can trade as normal, just expect a few delays as we get through the backlog.

PG

Originally Posted by penonomegringo

This is from LondonGoldExchange, a well respected and established Exchanger


e-gold Panic Selling

Due to market conditions created by rumours on forums and general hearsay because of a recent magazine article, there has been a huge bout of panic selling of e-gold. This has created a huge backlog of orders for us (especially UK) and subsequently to slow the flow we have to put our fees up to 3%. This is a temporary measure aimed to slow the pace of sell traffic.

We stress that we are trading with e-gold normally and continue to support it as our No.1 Digital Currency. People are buying e-gold at an increasing rate too, so not everyone is panicking. e-gold is not like INTGold and one should not compare the issues that have been happening. There were months of trouble with lots of tangible evidence of suspicious activity with INTGold. With e-gold there has been a damaging magazine article and an FBI raid. e-gold were trading as normal the next day and Omnipay were accepting In and Out Exchanges (Buy and Sell) and fulfilling them as they have been doing for years. There is real gold in vaults in locations around the world backing up the currency, INTGold had nothing.

Please think again if you are worried and just want to ’leave’ the e-gold system. The recent Business Week article was biased and just plain bad reporting. There was no comparison to how Credit Cards are used in crime, or nothing about the use of cash or Western Union or even banks for money laundering. The report was trash and has damaged the reputation of e-gold, but the industry will get over it and continue its massive growth.
So, to recap, please do not panic sell, there is no need. Of course we will accept your e-gold if you do want to sell as we have no problem taking it because we are confident that we can trade as normal, just expect a few delays as we get through the backlog.

PG

Interesting,

Sounds like the run on banks scenario is on. Like I have always said, once the feds get their fangs into you, you will be destroyed whether you are right or wrong, innocent or guilty, the feds are only concerned with one thing, shutting company down.

Good luck to all, Mike

Mike,
I disagree with you. feds are not just interested in shutting company down, They just want YOUR MONEY.
Al

Originally Posted by almye

Mike,
I disagree with you. feds are not just interested in shutting company down, They just want YOUR MONEY.
Al

Funny,

But it means the same thing, for when they shut the company down, they do end up with the money. (g)

Good luck to all, Mike