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Posted by =?utf-8?q?liberi=C4=9Du,_kaj_v on December 25, 2006, 4:42 am
Ed wrote:
> [edit] Crime and fraud
> e-gold has notoriously been the medium of choice for many online
> con-artists, with pyramid schemes and HYIPs ("High Yield Investment
> Programs") commonplace. This is presumably partly due to e-gold maintaini=
ng
> its policy of irreversibility of e-gold transactions.
One can say more more the same of any cash currency.
http://www.sec.gov/answers/ponzi.htm
> e-gold and OmniPay have also been accused of being a medium for money
> laundering, although this is questionable given that there were only 24
> customer accounts holding over 10kg of gold (approximate value $200,000) =
by
> April 2006 [10]. As digital gold currency providers are not banks, they a=
re
> not legally required to perform various sorts of "know your customer"
> background checks. However, many e-gold exchange providers require a high
> level of identification, sometimes more intrusive than a bank.
True.
> Opening an account at www.e-gold.com takes only a few clicks of a mouse.
> Customers can use a false name if they like because no one checks. With a
> credit card or wire transfer, a user buys units of e-gold.
It is very difficult for anyone, especially thieves and others not
identified to the exchanger, to find someone to accept credit card
(soft / reversible money) for digital or physical gold (hard currency),
as this has either ruined the trusting exchanger or they have had to
refuse exchanges from credit card or from PayPal (due to PayPal's
untrustworthy policies), long before PayPal changed their policies to
eliminate competition from other non-banking financial institutions. I
think there may only be one exchange provider accepting cards, and then
only for a limited set of existing and strongly verified customers.
> Those units can
> then be transferred with a few more clicks to anyone else with an e-gold
> account. For the recipient, cashing out =C2=A1X changing e-gold back to r=
egular
> money =C2=A1X is just as convenient and often just as anonymous. [11]
Anonymity of e-gold use is a myth, as exchangers and/or e-gold record
IP addresses, e-mail addresses, bank accounts used, and such,
especially since the (e-gold) database was compromised to the FBI,
after a long history of (apparently) friendly FBI visits, and efforts
by e-gold to provide assistance to the discovering and elimination of
criminal usage of the currency, which is a lot more than one can say of
the Federal Reserve and their Federal Reserve Notes, and the lack of
serial number checking and data matching (reasonably) done on ordinary
transactions in the cash economy.
> In January 2006, BusinessWeek reported on the use of the e-gold system by
> ShadowCrew, an 4000-strong international crime syndicate involved in mass=
ive
> identity theft and fraud [12]. Omar Dhanani of Fountain Valley, Californi=
a,
> connected to the ShadowCrew, is an e-gold customer and is reported to have
> moved amounts ranging from $40,000 to $100,000 a week from proceeds of cr=
ime
> through e-gold [13].
"ShadowCrew" should be held liable for their crimes, when proven. The
currency itself is not the cause of the crime.
> In response, Chairman and founder, Dr. Douglas Jackson published a letter
> which stated that "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, provid=
ing
> data and investigative assistance in response to lawful requests." He
> further noted that "Our staff has participated in hundreds of investigati=
ons
> supporting the FBI, FTC, IRS, DEA, SEC, USPS, and others." [14].
Yes. What he said. :)
> In August 2006, WORLDLawDirect lawyers announced e-gold Ltd. officials and
> their legal counsel to be the subject of a U.S. Federal Court subpoena. T=
hey
> believe e-gold Ltd. is subject to U.S. Federal Court jurisdiction and may=
be
> held liable for some or all of the investors' losses (and potential triple
> damages) in the Solid Investment (Solidinvestment.com) large scale HYIP s=
cam
> [15].
It would be outrageous to penalize the uninvolved, ordinary account
holders, by trying to claim damages against the currency itself. They
would never do that to holders of US Dollar cash notes! An e-gold
account is the only way to hold e-gold. It doesn't exist as cash
outside the e-gold database. Even 1MDC (www.1mdc.com), a proxy currency
for e-gold, is retained in 1MDC's e-gold accounts - where 1MDC pays
e-gold's one percent per annum storage fee, instead of the 1MDC account
holder).
E-gold is good for the digital economy, despite scum who fool fools
into trusting that they will pay them ridiculous "investment" earnings
if they part with their money. E-gold has much cheaper fees, in the
order of a few "cents", rather than the dollars that credit cards and
Western Union alternatives cost on most Internet purchases or other
transactions, and many people do not wish to use credit cards, nor
submit to their terms, costs or risks. See
http://www.ao.com.au/e-gold.htm for details.
> >I this has a good website MIF to invite everyone to see me this to have
> > a good website, asking everyone to see, this website doesn't need
> > registration, only needing your E-GOLD account number, all right.I have
> > already done a period of time.Return a money amount of investment-3%
> > everyday,
> > Profits direct everyday returns money quickly to your E-GOLD bank
> > account.
> >
<SNIPPED the rest of the conman's original message that started this
thread>
Regards,
Ian Green
https://secure.pvcse.com/ex.change...000053
http://open2exchange.com/buy.sell...000024
https://www.1mdc.com/cgi-bin/paymail.cgi?107242ipgEUR
https://pri.pecunix.com/money.refined?payment=3Dian.green@ao.com.au
http://107242.e-gold.com/
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