e-Gold's Nefarious Strategy

In July of 2008, e-gold.com promised to its account holders that they are registering their company with the Financial Crimes Enforcement Network ("FinCEN") in order to resume business or at least allow its user base to withdraw funds. After more than two years, e-gold is still nowhere close to keeping its promise.

Many exchangers, including AsianaGold.com, CentreGold.ca, Absolutexchange.eu and others, report numerous requests every month by their clients to sell e-gold. Publicly, these exchangers can only answer that e-gold still does not allow any out-exchanges, so they cannot process their clients' request. What various exchangers say privately, however, sheds more light on the e-gold situation.

MoneyFacture has found out through private channels that it may in fact be e-gold's strategy to not resume out-exchanges even if they could. e-gold has stated numerous times that they would comply with U.S. laws and remain in the United States as a payment processor, but history, and facts, show that no payment processor can possibly provide any kind of useful, honest, or respectable service, without charge-backs (reversals) while remaining in the USA. e-gold's management knows that their business is dead in the water. Most account holders provided their personal information on more than one occasion but to no avail. Why waste time verifying, more than once, every account holder? Why not allow out-exchanges, perhaps with a court-appointed overseer?

Simple: e-gold is charging egregiously high monthly fees on every funded account, making for itself tens of thousands of dollars per month or more, depleting these accounts for several years now. This amounts to nothing more than a grab at account-holders' money, or fraud.

They know that most users have migrated to non-American payment processors like LibertyReserve.com, EuroGoldCash.com, AdmiralGold.com and others. e-gold strategy is to completely wipe out all the value out of the e-gold system. The USA government apparently has no problem with that. The USA considers every account holder of e-gold to be nothing more than a criminal - a terrorist, a hacker or worse. The USA considers anyone that is not American or that prefers financial privacy to be an enemy of the state.

It is time to close the final chapter on e-gold, count our losses, and abandon both e-gold and the infamous country where it is based.