Is this the end of e-gold?
On April 27, the US Department of Justice indighted the founders of e-gold for
one count of conspiracy to launder monetary instruments, one count of conspiracy to operate an unlicensed money transmitting business, one count of operating an unlicensed money transmitting business under federal law and one count of money transmission without a license under D.C. law.
Essentially, e-gold’s crime was failing to invade its customers’ privacy, thereby potentially allowing American criminals to transfer money. Unfortunately, the company’s founders are American citizens, living in Florida and Maryland, so e-gold’s days look numbered. Unless, of course, the company successfully defend itself in court — but even then, the restraining orders and the costs of the legal battle will seriously hurt its operations.
So much for the old geek dream of an internet currency free of government interference…