Monday, December 11, 2006

EGold Raided

Reports have been circulating on the criminal bulletin boards for some time stating that EGold has been blocking various accounts.

A story in Wired suggests that the reports are true. After a raid on the company offices EGold has dropped the libertarian anarchy 'you can't touch us' pose and is busy co-operating with law enforcement.

EGold is incorporated in Nevis but operates out of offices in Florida. The company has been charged with operating an unlicensed money-transmitting service. According to the article the company is disputing the charge on the technical grounds that they do not accept cash.

People who set up such businesses need to think about how they will be used by criminals. A business founded on a technicality is not going to last very long if it becomes a conduit for organized crime.

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