A grand jury in Washington, DC has
indicted E-Gold Ltd., its owner/founder, Douglas Jackson, and several other people associated with the digital currency compnay on several charges, including conspiracy to launder money and conspiracy to operate an unlicensed money transmitting business. This, according to the Justice Dept., comes after a 2 1/2 year investigation by the Secret Service, and over a year after the Dec. 19, 2005 FBI/SS raid on E-Gold's offices in Florida.
The US government's beef with E-Gold is that they say it is the digital currency of choice for terrorists, identity thieves, child pornographers and other scumbags. I don't doubt it. But it's also used by
coffee growers,
potters,
software creators,
web hosting companies,
publishers, and lots of other non-scumbags. You can even use E-Gold to make donations to the
Mozilla Foundation, the
Loaves and Fishes Soup Kitchen, and other charities.
And according to
this great Wired article from way back in 2002, you can even use E-gold at Action Gun Outfitters' pistol range.
Personally, one of the reasons why I like E-Gold is for its subversive factor. I also like it because it's the closest thing to a working, large-scale online micropayments system we've got. I like it because it's a global online trading system that's backed by real gold. I like it because it's a private online trading network that isn't controlled by any government. Although it looks like the US government would really like to change that.
The bottom line for me is this. If Jackson was knowingly involved in anything to do with kiddie porn, identity theft or any of the rest of it, then I hope they nail him. He says that not only is he not involved in anything like that, he's been
working with the Feds to help them bust the criminals who've been using E-Gold to conduct their business. And according to this letter, E-Gold was one of the founding members of the
National Center for Missing and Exploited Children’s Financial Coalition against Child Pornography.
So I'm going to go with "innocent until proven guilty", because my gut feeling is that what's really going on is that the US government doesn't like the idea of an global trading system that they have no control over. I accept that there are some seriously nasty people using E-Gold to conduct some seriously nasty business. I could say the same thing about US dollars, but I don't think that means that
Henry Paulson (US Sec. of the Treasury),
Anna Escobedo Cabral (US Treasurer) and
Ben Bernanke (Chairman of the Federal Reserve System) should be held responsible for their "involvement" with those nasty criminal activities.
At InformationWeek,
Larry Greenmeier says he finds it hard to believe that E-Gold could be "a misunderstood crusader for cyber safety" and also a "key enabler of identity theft." I don't see what's so hard to believe. Criminals, like the rest of us, use the tools that best help us accomplish their goals. E-Gold is a great tool for conducting business transactions online. And many of the features that make it great for all of us non-scumbag, law abiding (mostly), honest (more or less) people also make it a great tool for the scammers, scumbags, criminals, perverts, etc.
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