I guess persecuting E-Gold is easier (and politically safer) than prosecuting actual banks for their fraudulent, deceptive, and extortionary practices. All the prosecutors have to do is throw in the words "child porn" and they have essentially free reign to hound E-Gold into the ground... Hmmm, could the banking PAC's have anything to do with this?

Yet I notice the site is still operational. Will this publicity drive even more suspect activity?

While the Government may be touting the child porn and CC fraud as the impetus for this, the real motivation for going after eGold is that the Government is unhappy with eGold's privacy policies. I seriously doubt that eGold would deny a subpoena if one was granted by a legitimate court of law.

The problem is that eGold will not honor anything but a lawful subpoena. In other words, when the IRS shows up asking for records and doesn't have a subpoena for the records, eGold won't give it to them. Of course this pisses good old uncle Sam off to no end because as we all know, a lot of times they can't get one legally. Imagine that... Making the Government obey its own laws. Who would have thought it...

The Feds need to stop meddling with legitimate businesses. They are using red herring "Child Porn" accusations to bring down a service that is 99.9% made up of honest and regular individuals.

Oh quit defending Egold. I was a member and I had money taken from my account. Egold was very unhelpful. They make it very easy for criminals to stay under the radar. The story is long, but trust me on this. Egold is Evil. That is my new motto.

I don't see them going after western union, which is used by almost every scammer on eBay..

This is obviously because e-gold didn't act like our government now does and circumvent the law altogether. If they would have allowed access to private information without a warrant our government would have never brought this case. They didn't have a legal or legitimate reason to get that information and e-gold called them on it. The government should be going after really corrupt card processors like 2Checkout.com, they ripped off several people I know and bragged about how there was nothing they could do to get their money ( these were the actual business owners with legitimate accounts in good standing ). Get off e-gold’s case and go after this arrogant company!

Regular US currency (Cash) is used to buy drugs, and do many things that might be considered illegal. Should the government ban the dollar for the same reason? This sounds pretty crazy.

egold threatens the status quo and Powers That Be [tm] in a very dangerous way-- it challenges the monopoly on money. so "money laundering" is a subterfuge for what in actuality is the systematic destruction of alternative money systems. monopolies are supposedly anticapitalistic, right? true. nevertheless, money creation is the ultimate hidden monopoly.

see a free electronic paper I wrote called
http://econpapers.repec.org/paper/wpawuwpma/0203005.htm

fractional reserve banking as economic parasitism

endorsed by two phd economists. printed in nexus
magazine, 60k world circulation. #1 top downloaded
economics paper. used by economics
teacher in australia as standard classroom material.

more info on request.

recent supporting material:

http://www.democracynow.org/article.pl?sid=04/11/09/1526251 -- confessions of an economic hit man by Perkins
http://video.google.com/videoplay?docid=-9050474362583451279 -- money as debt video by Grignon<

http://www.monetary.org/video/kucinich/win_broadband.wmv" -- Congressman pres candidate Dennis Kucinich
at last years
2005 Monetary Reform Conference

Hmmm...I wonder how many posters here have links to E-Gold. Why should this organization be exempt from the laws that govern other financial institutions? Transparency is a good thing.

Just goes to show the best way to get the government on someone's case is to have the audacity to want to keep your money-stash private. The government wants to know where all your money is all the time, which is why banks are sooooo regulated to begin with (Suspicious Activity Report, anyone?). Now, something shows up that's not a bank, so the Feds need to shut it down. Thanks Patriot Act!

I agree with the following comments. Instead of going after actual criminals, the government is going after the middle man (probably for tax money). It's akin to blaming car manufacturers for drunk driving.

I remember this case and remember that E-gold HAS been cooperating with law enforcement. E-gold is based on anonymity. What are they supposed to do when someone opens an account? Check every name, number and IP address? So what if the name is Donald Duck? I agree with what the other gentleman said: LE uses "child porn" as an excuse for almost every investigation they want to pursue but don't have enough to go the "normal route."

This is bad. E-Gold is just like another bank. How does Bank of America know if someone, after a withdrawal, uses the money for evil. Didn't the Sept. 11 hijackers use normal banks for their operation.

America Freedom To Fascism or Restore The Republic Good sites to get involved in fighting Big Brother
Don't take it. Do something about it.
Peace.
Angelo PA

Assuming the above story is true, or even "mostly" true, any company which allows criminals to use its services unhindered must be immediately shut down. Permanently.

Some of you really need to get up to speed on the relevant laws and how financial institutions work before commenting on this. No financial institution gives out client information with out a properly executed subpoena. To do otherwise would open them up to liability since it would violate their own stated privacy policies and therefore allow the affected client(s) to sue for that violation.

Egold, as a money services business operating in the United States, is obligated to follow certain provisions of the Bank Secrecy Act and the Patriot Act which, if the allegations and documentation noted in the article are correct, they blatantly did not do.

Please get your facts about the relevant laws and operational aspects of the financial services industry straight before trying to comment on them.

The real reason the Feds are after e-gold is they don't want people to conduct transactions in anything other than US dollars. The dollar invoicing system is the achilles heel of the US economic system. If international commodity markets were to ever settle transactions other than the US dollar, our standard of living would be toast.

I feel like I am in a E-Gold coffee room with the rest of the chatter. Do a modicum of research on E-Gold and you can understand why the government got their hackles up. I am in many ways not happy the BS of our modern government (does not matter who is in the white house) but E-Gold has some blatant signs that it is a legit business At least all T;s crossed and I's dotted) that strives hard to support less than legitimate practices. Just do a little research on your choice of sources and you will find this to be true.

I am concerned about the "get paid; stay paid," line. People who regularly conduct fraudulent transactions are, of course, very concerned about getting "unpaid".

I have used e-Gold successfully to send money to DXinOne. e-Gold has been more upfront than the latter.

meeh, I know people who underage gambled based off the E-gold currency, but I wouldn't blame e-gold for it. Rather, I'd blame the online casinos for that.

I think its a good thing , my Identity was stolen through crooks using this service.

Can't be any worse than the BS of 'PayPal'...where's the freakin' investigation of PayPal? Oh right, paypal's practices only hurt consumers and did not hinder the governments investigation of crimes. Got it.

Wow, am I the only one who picked up on this:

"...which allowed for anonymous transfers of value at a click of a mouse" said U.S. Attorney Jeffrey A. Taylor

Is it just me or did you read between the lines that the U.S. Attorney thinks that "anonymous transfers of value" are a problem? I'm all for shutting down businesses that turn a blind eye to criminal activity taking place via their business, but if this is the leg they're standing on I resoundingly say NO WAY JOSE! What next, use my SSN to buy a gallon of milk? At what point can I maintain my privacy? To me, privacy is worth a few scumbags getting away with murder. Sucks, but I'd rather live free with a few risks than live safe with a few freedoms.

Fact: The purported USDollar is a "debt" instrument denomonating a debt owned by the private international conglomeration known as the Federal Reserve against the USA.

Fact: e-gold trades the commodity, Gold metal (Au)
Fact: Trading in commodities is NOT a taxable activity.
Fact: The private owners of the Federal Reserve (without the taxing muscle of the IRS) cannot bring the "taxation" schemes of the IRS/Fed Res to bear against egold.
Fact: e-gold is NOT bound to obey the unlawful conduct of any government official nor any unlawful/disingenuous document intended to "fool" the unwary businessman.
Fact: If the private owners of the Federal Reserve aren't getting their due (what they believe is due them) from e-gold for their use of Federal Reserve Notes (a private currency/evidence of the debt the USA owes), it is logical that the private owners will exert their influence with agents in the DOJ to muscle e-gold into submission or cease to exist. It's the ever existing con of the protection racket.

The CP charge is such nonsense, its terrible of the gov to float that. I trust they will fight these allegations.

Why is everyone so paranoid about the government (or anyone for that matter) watching what you spend your money on? I know it does seem a bit Big Brother, but if you weren't doing anything suspicious, then you wouldn't have anything to worry about.

Then you won't mind sending me your Checking and Savings account numbers, right? I'd just like to prove to the world, at no charge to you, that you're on the up-and-up... or are you doing something suspicious over there? You do trust me, don't you? After all, "I'm from the Government. I'm here to help." :-)

The government is incompetant. Even if there is no malice, or petty government thugs abusing their power for political gain, they can still arrest the wrong man.

Look at all the people being exonerated of murder by DNA evidence!

No, we have much to fear from our government. We need to make the government fear the people! Maybe if a few of our corrupt officials knew that they'd be burned alive in their beds if they keep abusing our constitution and laws...maybe then we'd get a little more acountability. But, I doubt it. They'd just abuse their power yet again and 'swift boat' those who would force justice upon them.

The government is incompetant. Even if there is no malice, or petty government thugs abusing their power for political gain, they can still arrest the wrong man.

Look at all the people being exonerated of murder by DNA evidence!

No, we have much to fear from our government. We need to make the government fear the people! Maybe if a few of our corrupt officials knew that they'd be burned alive in their beds if they keep abusing our constitution and laws...maybe then we'd get a little more acountability. But, I doubt it. They'd just abuse their power yet again and 'swift boat' those who would force justice upon them.

Sean, don't make this into a "hate-America-first", liberal rant against all things conservative. You'll just end up looking like a fool (like your "leaders" did this weekend after the #2 Al Queada dude ACTUALLY SAID what we conservatives have been warning about losing the war).

Why not let the government check your butthole? If you didn't do anything wrong you have nothing to worry about, so just bend over for that latex clad finger.

Larry from Ft.Lauderdale - I was reading along and enjoying the debate until I read your silly comment....thanks for the laugh and missing "the point"

Come on, Larry. Hating the abuses of goverment run amok is quite the opposite of hating America. Long ago,conservatism was all about limiting government to its strictly constitutional functions, using only gold and silver as the nation's money (something that can't be printed willy-nilly out of thin air by a privately owned central bank, thereby constantly eroding the purchasing power of the citizenry's income and savings),respecting private property, encouraging free enterprise, and keeping the bureaucracy's fat,intrusive nose out of people's private affairs. The notion that the government is entitled to track all "transfers of value" would have seemed preposterous to a classical conservative. And the notion that, since we have nothing to hide, we should all trust the nice government men (and women) is precisely the un-American stance that gives rise to the tyranny that our founders struggled very hard to preclude.

I'm surprised "National Security" and "War on Terror" weren't the excuses this time.

Sean in todays America your post is good for at least twenty years in lockup. "if a few of our corrupt officials knew that they'd be burned alive in their beds... " You must be crazy writing that, I doubt you are anonymous. You have to forget old America- it's gone, if you want freedom of speech you need to find another place to live.

EGold is good... They are descent people doing a fine job. The US Government's attraction to this case has occurred as result of "favors being called in" on behalf of a group of people who stand to LOSE a lot of money/business. I'm all for a free market and "proper" capitalism; this type of commodity transaction model is a scary new competitor which will ultimately HELP the US economy.

The war on CP is a very dirty battle, we are out gunned and outmanned. Our government is not at all perfect, but I'm proud to say that I stand by my country and let's hit them where it hurts. "MONEY"

People one of the main points is that E-Gold does nothing to protect those who have been scammed or been tricked out of money. They need to come up with a way to ensure that the transaction is legit and pay the vendor once the customer has received the product or service.

Are they planning on returning money that they know was stolen? I'm sure they will prosecute the pedophiles, but what about the people who lost money due to scam artists?

What about the innocent person who has put a little money aside in Gold? This is very disheartening that the US Government can freeze that money. I know of one man doing mission work, and he was drawing off of his gold account. Now it is frozen. He has no income unless he starts begging. How sad that there is no way to bail out those who are being honest.

Is the message here really the government trying to shut EGold down? Seems to be the case. But the government throws in catch phrases like "child porn" and "criminal activity" to get the FUD(Fear,Uncertainty and deception) ball rolling. it may or may not be happening.

one item: if someone as myself were to open such an account, I have to have some sort of bank account for any funds from EGold ultimately thereby leaving some sort of record on who I am. what a world we live in..

To Larry, isn't America "supposed" to be about freedom of speech? if this is soo bad then, how can we say it's bad when american businesses are known to have funneled money to the old Nazi Regime. wouldn't that be worse?

just because someone like Andrew says something like he does doesn't mean he's anti-american. I guess the government hates people who get rich by other than normal means. Kinda sad really.

The government said a series of accounts labeled "Kidz Index" and "lolitanymphets" were used in $474,000 worth of transactions.

OK, now how do all of you quarterbacks explain this one?

How about investigating those politicians that were screwing underaged paiges? Where did that go?

Enjoyed reading the comments, but I don't believe anything is going to be done by the Feds because they are in cahoots with the banks. Alexander Hamiltion is finally getting his wish. The Feds came out with check 21 to stop kites and the float. With customers checks now clearing within a day or less,there is no room for error. However, the bank can still hold a depositors check for up to two weeks for the customer's protection. That's really fair. I say the government is in on this because I can't think of one other issue as important as this that the right doesn't attack the left and the left doesn't attack the right for being in the bank's pocket. Thus they are all in on it. The ultimate goal for the bank is to eliminate cash, and they will do it within 10-15 years. The banks have convinced the older customers to use their Debit card because it is safer for them, and the younger people see it as technology. Using cash is becoming suspect. Go in to a store and make a $2000 purchase with cash and you will get the look. This person must have done something illegal to have this much cash. When the day comes that people with cash are looked upon like Bruno Hauptmann holding a wad of silver certificates, the banks will have taken over and the government will say that it is for our own good because the only people who use cash are drug dealers and hookers; and what are they to do? have bar codes tattooed in the appropriate location?

name ten people or businesses that made money, that were not criminals using e-gold

HAS THE E-GOLD SITE BEEN CLOSED AS RESULT OF THE INDITMENT? Atleast there should be a way of striking a balance between the gains and effects of e-gold as a means of transaction.