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e-gold cracks down on HYIPs, AutoSurfs and Ponzi scams
By admin | September 20, 2007
I bring good news for all legitimate users of e-gold (by legitimate users I mean those not involved in a financially exploitative scheme - ie HYIPs etc) . E-gold has finally decided to take out the trash . I was just casually browsing a popular online investment forum when I got word of the latest posting on the Digital Money World blog (to view this posting click here) . I’m going to give you just the gist of it, so if you want the little details please visit the above link to the Digital Money World blog. Basically e-gold has started to apply the Right of Associate clause (clause 4.6 in their TOS) to place a value limit on accounts found to be associated with questionable financial activities - i.e HYIPs, AutoSurfs, and Ponzi scams. An account that has a “value limit” placed upon it is also commonly referred to as a “blocked account”. In order to have the value limit removed from the account, e-gold will request of you the following pieces of ID:
a) A signed and notarized affidavit listing: Name, address, and telephone number for the owner of e-gold account XXXXX
b) Copy of a telephone or utility bill that has the same address stated in item A.
c) Notarized copy of Passport or Driver’s license for the account owner.
Addressed to:
G&SR
175 East Nasa Blvd.
Suite 300
Melbourne, FL 32901
Attn: Due Diligence Unit
Does this mean that once you send them ID your account will be unblocked? No, not necessarily. If your account is directly related to Ponzi, AutoSurf, and HYIP scams your account will still remain unblocked.
Does this mean that e-gold steals my money? Well, not exactly. There is a workaround, but unfortunately it is not as simple as selling your e-gold to an exchanger. The only way to do this is to spend your e-gold to an older e-gold account because only such older accounts still have the option to “accept spends from blocked accounts” available in the account admin section.
As a result of this stringent regulation Ponzi scams, HYIPs and the rest will surely be fleeing e-gold’s system and move to e-currencies that are based 100% offshore. I for one don’t really care at all and think that e-gold’s future is brighter without having HYIPs and Ponzi scammers as their customers.
Kudos to e-gold! A toast to e-gold’s success! Cheers!
Topics: E-Currency News |
September 20th, 2007 at 10:42 pm
There is a downside to it.
Few of the admins that try to run non-scamming programs are thrown in the same basket with scammers.
But that’s just the way it was even long before any e-gold issues started…
September 20th, 2007 at 10:56 pm
Yes you are quite right. The thing is that e-gold has no way to tell if your program is legit or not. Doing due diligence on specific investment programs would be highly impractical so I guess they are using the heavy hammer approach - get a big as possible hammer and hope you hit all the nails at once.
I suppose that if you comply with their requirements and send in ID docs they will most likely unblock your account.
Speaking of which, has anyone been through that and had their e-gold account unblocked after sending in proof of ID?
September 20th, 2007 at 10:59 pm
lol..I just checked out your website and saw that what I just asked about happened to you. Sorry to hear that. At least you can still liquidate your e-gold account as I know some people are selling this service. Meaning setting their old accounts to allow spends from blocked accounts and cashing out the e-gold for you. However I can easily see e-gold catching on to this and completely disabling that ability.
September 21st, 2007 at 1:16 am
Yes, I’ve sent the papers and got rejected. Guess they consider me just another scammer.
Nevertheless, I switched to LR and deposited advertising revenue there so I’m paying users from LR to their LR accounts.
September 21st, 2007 at 7:46 am
I suppose they don’t want anything that has to do with investing or anything similar. Well, correct me if I’m wrong, but your program is more like a revenue sharing program than “investment”.
I am curious to see if the big “legit” users of e-gold like marketiva, north finance will go back to supporting e-gold. I hope at least marketiva does.
September 21st, 2007 at 2:22 pm
Hi, Alan,
yes, profit is shared among investors. So both terms “investment” and “profit sharing” are correct.
I wasn’t aware of the term “profit sharing program” when I created RTA ; it’s in fact “marketing, monitoring and other activities profit sharing program”
But I guess you’re right: “investment”, “investing”, “invest” are no-no words for e-gold…
September 21st, 2007 at 4:40 pm
Hmm..yes, I guess that’s just the way it has to be. Well at least you’ve found an alternative. I wish you the best, and thanks for stopping by my blog. Take care Max.