e-gold was a digital gold currency operated by Gold & Silver Reserve Inc. under e-gold Ltd. that allowed the instant transfer of gold ownership between 1996 and 2009, when transfers were suspended due to legal issues. e-gold Ltd. was incorporated in Nevis, Saint Kitts and Nevis with operations conducted out of Florida, USA.If you don't think something along these lines is going to happen to Bitcoins, you are sadly mistaken. There is no central control group for the government to go after, but they will go after those exchanging dollars to bitcoins and vice versa. They are not going to allow loss of control of the medium of exchange, if they can help it. Many will lose big. Consider yourself warned.
In 2007 the proprietors of the e-gold service were indicted by the United States Department of Justice on four counts of violating money laundering regulations. In July 2008 the company and its three directors pleaded guilty to charges of "conspiracy to engage in money laundering" and the "operation of an unlicensed money transmitting business" in the U.S. District Court for D.C. The company faces fines of $3.7 million.
As of November 2009 the company's website states, "As e-gold Users are aware, by agreement with relevant authorities including the U.S. Department of Justice, e-gold has suspended all e-metal Spend activity subject to meeting certain licensing requirements. As a result, e-gold Users have been unable to engage in any transactions, including exchanges, that would require either receiving or making an e-metal Spend from the accounts they control. We are, however, working diligently to develop a means by which account Owners will be able to access the value in their account".
As of December 2010 the company states that refund policy has been approved "We are pleased to announce that we have finalized an agreement with government authorities that will permit owners of VAP-Qualified Accounts to be paid in U.S. dollars their proportionate share of the monetized value of the e-metals in such Accounts"[...]In April 2007, the US government ordered e-gold administration to lock approximately 58 e-gold accounts, including ones owned by The Bullion Exchange, AnyGoldNow, IceGold, GitGold, The Denver Gold Exchange, GoldPouch Express, 1MDC (a Digital Gold Currency, based on e-gold), and forced OmniPay's owner, G&SR, to liquidate the seized assets. A few weeks later, e-gold itself was indicted on four counts.[...]On December 31, 2010, e-gold initiated a value access plan that was approved by relevant governmental authorities in the U.S. Users would have access to the value in their accounts after submitting additional information to e-gold, and after a review of this information by the Court-appointed Claims Administrator and the U.S. Government.
Wednesday, April 10, 2013
Bitcoiners: Remember What Happened to eGold
Wikipedia has a decent background report (my highlights):