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Online payment processor e-Gold to shut down?

When e-commerce activities aren’t supported by Paypal, throngs of other alternatives thrive to get a piece of the pie. I’ve tried StormPay before though some of my old friends have been using e-Gold as well. However, e-Gold may face the possibility of shutting down soon:

Three owners of online payment processor E-Gold and an affiliated company have been indicted for money laundering and related crimes for allegedly allowing sellers of child pornography, operators of investment scams and other types of criminals to send and receive payments related to their misdeeds. The company vigorously denied the charges and accused prosecutors of fabricating testimony.

In addition to E-Gold, the four-count indictment names Gold & Silver Reserve and company owners Douglas L. Jackson of Satellite Beach, Florida; Reid A. Jackson of Melbourne, Florida; and Barry K. Downey of Woodbine, Maryland. They are charged with one count each of conspiracy to launder monetary instruments, conspiracy to operate an unlicensed money transmitting business, operating an unlicensed money transmitting business under federal law and money transmission without a license under the District of Columbia.

According to prosecutors, E-Gold’s status as the preferred payment method from some of Earth’s lowest life forms was for good reason. The online service was purportedly backed by stored physical gold, and all that was needed to open an account was a valid email address. No other contact information or background information was necessary.

The service is allegedly being used by child pornographers and similar activities. Full story from the Register .

I can now imagine all of my friends withdrawing their e-Gold or trading them with real-life or tangible currencies.

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Avatar for Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

4 Responses

  1. Avatar for Ashish Singh Ashish Singh says:

    Man this is sick.

  2. Avatar for Mark Herpel Mark Herpel says:

    Its business as usual over at e-gold. No one has left, they are open and transacting business and they have not missed a beat. Also exchange agents are working, so e-gold is plenty liquid and no problems buying or selling. Even the agents mentioned who got their accounts frozen, have new ones now and are back operating.

    Mark
    DigitalMoneyWorld

  3. Avatar for Voluntary Death Voluntary Death says:

    bakit naman kasi ayaw pa ng paypal dito eh. tch!

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