E-Gold e-payment system in a spot of bother

Sad to see the E-Gold e-payment system in the news this week, with US government droids accusing them of money laundering.

The US Department of Justice (DoJ) has indicted the operators of the E-Gold digital cash transfer system on charges of money laundering, conspiracy, and operating an unlicensed money transmittion business.

Perhaps worse, the DoJ has also obtained a restraining order on the three defendants named in the indictment to prevent the dissipation of assets, and has issued 24 seizure warrants on over 58 accounts believed to be property involved in money laundering.

Despite the fact that the restraining order does not limit E-Gold's ability to use its existing funds to sell precious metals for conversion into national currency for customers of non-seized accounts, it's quite likely IMHO that users of E-Gold will be rushing to withdraw their dosh into more conventional accounts.

The problem with E-Gold appears to stem from the fact that users of the system only need a valid email address to use the services.

Once open and funded, account holders can allegedly access their accounts across the Internet and conduct anonymous transactions with other parties anywhere in the world...