Category Archives: E-Currency News

GoldMoney: Important new feature introduced!

This is a long read, but definitely worth it if you are or intend to become a GoldMoney account holder.

Dear GoldMoney Customer,

We are pleased to inform you of an exciting newdevelopment. Beginning Sunday, 20 May 2007, it will be evenmore convenient to buy and sell gold and silver throughGoldMoney.

HOLD FUNDS ON DEPOSIT IN A BANK

We have opened Customer Segregated Funds Accounts for fourdifferent currencies with our banks. Thus, you will be ableto deposit money into these segregated customer accounts inUS dollars, British pounds, euros or Canadian dollars, anduse this money to purchase gold and silver from GoldMoney.When you decide to sell metal, the proceeds can bedeposited into these same bank accounts. Importantly, youwill earn interest on your deposit at very competitiverates, and have 24/7 access to your deposit and your metalthrough the Balances page in your Holding.

ADD AND REMOVE FUNDS

A new feature allows you to Add or Remove Funds from yourHolding, to easily facilitate the transfer of money betweenGoldMoney and your bank account. Also, you can now save thedetails of your bank account(s). So simply select theaccount you want to use, rather than typing your bankdetails each time you initiate a transaction.

GoldMoney accepts money transfers by electronic check (ifyou have a bank account in the US) or bank wire. Once yourfunds are received, the currency balance recorded in yourHolding is increased, enabling you to earn interest on yourmoney until you are ready to buy gold and silver.

WHAT THIS MEANS

1) A new way to use our electronic check feature

As before, you can use electronic checks to debit your bankaccount in the US to pay for your metal purchases, or toautomatically receive your sale proceeds. But now you canalso write and receive electronic checks from the US dollarCustomer Segregated Funds account. So rather than leavingmoney in your bank account while you wait to purchase goldor silver, use electronic checks to deposit your money inour segregated funds account and earn interest. Then buywhen the market price is right for you.

2) Purchases paid by bank wire

Presently when purchasing by bank wire, we need to receivethe funds within 2 business days for customers to 'lock-in'the buying rate. Bank wire fees are costly and oftendelayed, with the consequence that late orders would needto be completed at a price different than what the customerhad expected to receive because the 2-day deadline wasmissed, through no fault of the customer or GoldMoney. Ournew feature eliminates these problems.

Now, prior to placing a Buy order you simply wire funds fordeposit into the segregated funds accounts, and earninterest on that money while you wait to purchase metal.

Similarly, you will now be able to sell your goldgrams andsilver ounces and receive the proceeds in US dollars,British pounds, euros or Canadian dollars, which isautomatically deposited for you into the CustomerSegregated Funds account. The proceeds will be shown as anincrease to the currency balance in your Holding once theSell order is completed. But if you instead want to receivethe proceeds from your sale right away, simply 'click' theappropriate instruction, and the money will be immediatelysent to the bank account you choose.

3) Earn interest on your currency deposit

You will earn interest on your currency balances in theCustomer Segregated Funds Account. There is no minimum ormaximum deposit. Interest based on your average monthlybalance will be paid monthly, regardless of the size ofyour deposit.

The fee GoldMoney charges for this new service will reducethe interest income you receive by 1/4th of 1% per annum.Thus if the interest rate paid by our banks is 5%, theinterest income you earn on your deposit is 4.75% afterdeducting the administrative fee. Interest rates are ofcourse subject to change, but the present interest ratesper annum after deducting the administrative fee are: US dollar 4.18% British pound 5.00% euro 3.14% Canadian dollar 2.75%

FASTER AND CHEAPER

Our new segregated funds feature will save you both timeand money. Buying and selling will be easier and faster,and you will not have to incur the costs of funds transfersevery time you place an order. And you can earn interest onyour currency deposit at competitive rates."

E-gold Exchange Agents Are Now Gouging Their Retail Clients

It is just crazy how much e-currency exchangers are charging their customers to exchange their e-gold for national currency. For example, I’ve heard that Me-Gold is charging customers 50% for out-exchanges!!! Crazy!

For small amounts I would be willing to act as an out exchanger for you my dear readers and e-gold aficionados. My fee is 5% and I can pay you via PayPal or Money Order . If you live in Canada I can even send you an Interac e-mail money transfer.

Also, if you’re looking to buy e-gold via PayPal click HERE.

US Government Forces E-gold Redemptions – Seizes Gold

wow…read this.

This article is Copyright 2007. You may re-publish for free it if left intact and only if you give credit with weblink back to http://www.moneynetnews.com

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In an unprecedented move on or just before Wednesday May 9th, 2007, the United States of America has forced Omnipay et al E-gold to redeem all the gold backing the 58 previously frozen accounts owned by e-gold, 1mdc, icegold and a handful of other exchangers and customers to be liquidated effective immediately to a us dollar account owned by the federal government.

According to the reduction in the gold bar list, the bar count
has dropped by 48 bars of approximately 400 oz each between May 3, and May 9.

This redemption totals USD $11.357 Million.

Date Gold Grams ($ Value)
03-05-07 3,489,436 77.015 Million
09-05-07 2,974,871 65.668 Milllion

Gold Bars value Sold: USD 11.357 Million

MoneyNetNews has learned from a reliable source that e-gold has been ordered
to hand over a fresh copy of the customer database when the redemption
is completed.

MoneyNetNews cannot confirm if all of the 48 bars redeemed account for
the forfeiture action of the United States. It is possible that a part
of this activity can be accounted for by increased volatility in e-gold’s
general market.

Not only was E-gold / Omnipay ordered to convert gold (and silver) holdings
in the seized accounts into US Dollars, but that included their own
(Omnipay’s, and E-gold’s) frozen (seized) accounts. This will ultimately
result is great losses of value over time even if the victims of the seizures
are found to be innocent due to the in progress bull market in gold and bear
market in US Dollars.

The seizure order appears to be unrelated to the criminal case in progress
against E-gold and OmniPay in that the seizure of the accounts by the government
was done under a (separate) civil case, for which the Government has yet to file
anything.

By doing so, the government was able to seize accounts without having
to reveal anything to the owners of the accounts themselves. By law,
the government has 30, and possibly up to 90 days to file a complaint.

Until the government civil filing is done, none of the victims of the seizures
can possibly do anything to defend themselves, not even obtain information as
to why their accounts have been seized, or what they would have done wrong.

None of the victims of the account seizures have been advised of anything
officially at this time.”

Very important news from e-gold

On April 24, 2007, a Federal Grand Jury handed down an indictment charging e-gold Ltd., Gold & Silver Reserve, Inc., and the Directors of both companies with money laundering, operating an unlicensed money transmitter business, and conspiracies to commit both offenses.

Dr. Douglas Jackson, Chairman and Founder of e-gold, speaking on behalf of his fellow Directors and both companies vigorously denies the charges, taking particular exception to the allegations that either company ever turned a blind eye to payments for child pornography or for the sale of stolen identity and credit card information.

Dr. Jackson states, “With regard to child pornography, the government knows full well that their allegations are false, yet they highlight these irresponsible and purposely damaging statements in order to demonize e-gold in the eyes of the public. During the Inquisition, accusations of witchcraft and heresy were used to sanctify torture and seizures of property. In post 9-11 America, child porn and terrorism serve as the denunciations of choice. e-gold, however, as a matter ofincontrovertible fact, is the most effective of all online payment systems in detecting and interdicting abuse of its system for child pornography related payments. e-gold Ltd. is a founding member of the National Center for Missing and Exploited Children’s (NCMEC) Financial Coalition to Eliminate Child Pornography. e-gold is the only member institution to demonstrate with hard, auditable data a dramatic reduction of such payments to virtually zero, while billions of child porn dollars continue to flow through other (heavily regulated) payment systems. [Most members, that is, all the banks and credit card associations are utterly unable to even provide an estimate of the volume of such payments processed by their systems. eBay’s PayPal subsidiary, who may have the ability to make such a determination, has refused to do so and has indicated they destroy payment records after two years.] What is worse, until August 2005 when NCMEC courageouslybroke ranks with US law enforcement agencies and began directly notifying e-gold of criminal sites via the CyberTipline, component agencies of the US Department of Justice purposely concealed their knowledge of child pornography abuses from e-gold’s investigators, subordinating actual crime fighting to a policy agenda designed to dirty up e-gold.”

In December 2005, the Secret Service (USSS) deceived a Federal Magistrate judge with bogus testimony in order to obtain search and seizure warrants authorizing the government to seize the US bank accounts of Gold & Silver Reserve, Inc. The seizure, which netted the government about $ 0.8 million, was designed to put e-gold out of business without due process, since G&SR serves as the contractual Operator of the e-gold system. At a subsequent emergency hearing, thegovernment made no effort to defend their (sealed) allegations of lurid criminality, falling back to a position that their action was warranted because of a licensure issue. At the hearing, G&SR described its ongoing dialog with the Department of Treasury, initiated by formal request of the company in Spring 2005, to determine a possible basis for regulating the company’s activities, since it was patently clear to competent authorities that G&SR’s exchange service was not encompassed within any existing regulatory rubric [subsequently re-confirmed by experts at the Federal Reserve]. The US Attorney for the District of Columbia, responsible for the prosecution, was completely unaware of this orderly proceeding, as well as Treasury reports issued the same week that acknowledged e-gold as an innovation not meeting definitions of a money services business or a money
transmitter.

Since this time, the government has been confronted with overwhelming evidence that the USSS had made a horrible mistake in its attack on the e-gold system and its repeated defamatory claims in the media that e-gold is anonymous, untraceable, and inaccessible to US law enforcement. They have concealed the fact that Dr. Jackson had personally arranged to come to USSS headquarters to train the USSS cybercrime squad in December 2004 (along with agents of the UK’s National High Tech Crime Unit, and the Australian Federal Police) on advanced techniques, particularly in the area of efficient interaction with e-gold’s in-house investigative staff, but was prevented when senior USSS management learned of the initiative and forbade the training on the grounds of a policy declaring e-gold as their designated boogey man.

The Department of Justice has had to determine whether to continue to stand behind their component agency. Their decision to close ranks has directly resulted in a gross misallocation of resources, with the result that vicious criminals who might have been brought to justice remain at large. An example of this is the Shadowcrew investigation, hyped by the USSS as a major success in disrupting international credit card thieves. The USSS did not subpoena records from e-gold atany time in their investigation, or engage with e-gold’s superb in-house investigative staff, with the result that the sophisticated hierarchy of the ring was unmolested and probably strengthened while the USSS hauled in the low hanging fruit, “a dime a dozen and relatively easy to track down and pop”.

Similarly, there is compelling evidence that the international cartel of commercial vendors of child pornography continues to operate because the FBI Innocent Images Unit and Special Agents within the Immigration and Customs Enforcement Agency have been forbidden to follow investigative protocols developed by Dr. Jackson, apparently for fear of further belying the party line that e-gold is itself a nefarious operation.

With regard to allegations of money laundering, Dr. Jackson notes “G&SR’s online exchange service, OmniPay, has for years followed stringent customer identification procedures and an absolute policy of only accepting money payments by bank wire. If bank wires aren’t already “clean” then what is? Furthermore, e-gold Ltd. can scarcely be construed as a money launderer since it does not accept money payments from anyone in any form and has never owned a single dollar, yen, euro or any other brand of legacy money. As far as the possibility of a criminal successfully obfuscating a money trail, e-gold is a closed system. The only way to obtain e-gold is by receiving a transfer from someone who already has some. e-gold is also the only payment system accessible by the public that maintains a permanent record of all transfers.”

On April 27, 2007, the government served seizure warrants on G&SR ordering it to freeze, liquidate and turn over to the government the operating e-gold accounts of G&SR and e-gold Ltd. The value seized, about $762 thousand worth of e-gold from e-gold Ltd. and about $736 thousand worth of e-gold from G&SR [on top of the $0.8 million seized from G&SR in 2005, and the approximately $1 million spent by G&SR so far in its defense] constitutes the bulk of the liquid assets of bothcompanies. Perplexingly, a post-indictment restraining order states “Nothing in the provisions of this restraining order shall be construed as limiting the e-gold operation’s ability to use its existing funds to satisfy requests from its customers to exchange e-gold into national currency, or its ability to sell precious metals to accomplish the same once approval has been obtained.” Having taken virtually the entire operating funds of G&SR and e-gold Ltd., that is, the e-gold in both companies’ own e-gold accounts, it is unclear if the government has even a basic grasp of the operations it has been investigating for three years at a taxpayer expense in the millions.

The most remarkable element of the restraining order is that the US government deputizes e-gold with plenipotentiary powers to act as judge, jury and executioner against any account user e-gold itself has deemed to be a criminal: “It is further ordered that upon receipt of this order the defendants are required to freeze, that is, not conduct or allow any further transactions in e-gold accounts that the e-gold operation itself has identified as being used for criminal activity”. Although not accompanied by an outright letter of marque, this commission (the financial equivalent to double ought status?) would appear to be an acknowledgement that e-gold’s ‘Know Your Customer’ prowess far exceeds that of any regulated financial institution, who would be obliged to rely on court orders or other legal writs to determine if freezing an account is warranted.

Concurrent with this latest attempt to knock e-gold Ltd. and G&SR out of business and thereby effectively deny them due process, the government also attacked other prominent exchange services that deal in e-gold; IceGold, The Bullion Exchange, Gitgold, Denver Gold Exchange, AnyGoldNow, and Gold Pouch Express, plus a sophisticated and secure alternative payment system called “1MDC”. All of the listed exchange services also follow stringent Customer IdentificationPrograms congruent with what would be required of a currency exchange business, if the law supported such a classification. Two of the services, IceGold and AnyGoldNow, are located in Europe and deal primarily with non-US customers. As a direct and immediate result of the seizures, these companies, all of who had built a reputation for honoring their obligations to customers in a timely fashion, have been disrupted, and, at least in the case of Gitgold, checks to customers issued in fulfillment of exchanges have bounced. This is a repeat of what happened to G&SR as a direct result of the 2005 seizure, when over 200 checks to customers bounced and refunds had to be sorted out with severely crippled liquidity and without a US bank account.

It must not be overlooked that the search warrant obtained by misrepresentations before a magistrate judge in 2005 resulted in the government helping themselves to the financial records of hundreds of thousands of American citizens [plus citizens of virtually every other country] who had not been accused of any wrongdoing. Since the initial raid, the prosecutor has caused the Grand Jury to order complete dumps of the e-gold data base on three additional occasions.

This case has nothing to do with criminal activity, at least not on the part of e-gold Ltd., G&SR, the named individuals or these other exchange services of high reputation. It is about a Department of Justice that is out of control, cognizant of having made a horrible mistake but determined at all costs to preserve its turf. In a meeting at the US Attorney’s office in Washington on December 29, 2006, a Chief Assistant US Attorney told us that the United States knew we weren’t “bad guys” and that the United States had no interest in sending any of us to prison or causing e-gold to go out of business. This was in virtually the same breath as proposing that the current defendants plead guilty to Federal felony charges.

The plain fact is that the repeated statements and actions of the government since 2001, especially the USSS, are directly responsible for crippling e-gold’s ability to market its service to mainstream businesses and consumers, slowing [but fortunately not stopping] e-gold’s continuous development of advanced anti-crime capabilities, subordinating US law enforcement’s cybercrime fighting efforts to the forlorn hope of destroying e-gold, driving market share to non-US based alternative payment systems and making the US law enforcement community the laughingstock of competent cybercrime fighting agencies worldwide because of its obstinate inability to back down from the USSS’s longstanding e-gold vendetta.

All inquiries should be directed to the law offices of:
http://www.fuerstlaw.com/

Bad news for e-gold users :( (like me)

E-gold Major Agents’ Accounts Seized By US Government

It now appears this morning that all large e-gold exchange agents doing business with US clients have had their e-gold accounts seized by US court order.

Here is what we know as of this morning.

  1. Icegold, AnyGoldNow, 1mdc, Omnipay and other large exchange agents have all had their accounts blocked by a US government agency court order.
  2. When attempting to log in on these accounts, the e-gold server responds that the account does not exist. It appears the accounts have been seized by the US authorities.
  3. It is now not possible to unbail bars from e-gold Ltd.

(Icegold has since opened a new e-gold account and seems to be back doing business.)
*************

From the 1mdc web site. http://www.1mdc.com/

ATTENTION

Friday Apr 27 2007 – 4AM UTC

It appears that a U.S. Government court order has forced e-gold(R) to close down or confiscate all of 1mdc’s accounts. All 1mdc account’s have been closed at e-gold by order of the US Government.

Please note that it appears the accounts of many of the largest exchangers and largest users of e-gold have also been closed or confiscated overnight: millions of Euros of gold have been lost or confiscated in this event. Many of the largest exchangers are shutdown.

Realistically, it is extremely unlikely that this action will ever be reversed.

If the action is reversed, your e-gold grams remaining in 1mdc will “unbail” normally to your e-gold account.

You CAN spend your 1mdc back and fore to other 1mdc accounts. However you must be aware that it is likely your e-gold will never be released from e-gold.

Ultimately e-gold(R) is an entirely USA-based company, owned and operated by US citizens, so, as e-gold users we must respect the decisions of US courts and the US authorities regarding the disposition of e-gold and the safety and security of US citizens.

Even though 1mdc has no connection whstsoever to the USA, and most 1mdc users are non-USA, ultimately e-gold is USA based.

1mdc thanks it’s users and technical staff and support staff. From 1mdc’s point of view, 1mdc had only just started to generate income from spend fees so five years expense and experimentation was wasted.

It is the opinion of your 1mdc team that:

1. The early era of DGC privacy is over.

2. USA citizens will simply never be able to use DGCs.

3. The only DGCs that operate from now on will:
(a) Have no connection to the US
(b) Have no USA users (exactly as Swiss banks have no USA users)
(b) Will have higher ID requirements than e-gold currently does.

You are welcome to email “team@1mdc.com” but, again, the realistic view is that the e-gold(R) will never be released. Note that of all e-gold confiscated by US court order, none has ever been released.