Is e-gold about to be shut down or close??

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Is e-gold about to be shut down or close??
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Posted by: aqua

Is e-gold about to be shut down or close??

Just got this e-mail from Rate By Gold Exchangers

Quote:

This is a heads up notice to all customers that as of Jan 27th 12:00pm gmt our website will no longer accept e-gold as payment. If you have a ingold debit card you will no longer be able to fund the card using e-gold (not from our site). If you own e-gold and would like to cash out to your card this is the time to do it. Something big is about to happen with e-gold and possibly e-bullion (large majority of e-bullion is backed by e-gold). Very soon, you could be left with these currencies and no way to outchange. There will be a rash of exchangers no longer accepting e-gold to outchange on a very short notice. So take this as fair, accurate, and true warning that something big is about to happen.

Ratebygold Staff

http://ratebygold.com/

Posted by: forwardone

Could be some `panic` move going on I guess. There has been a lot of speculation recently about e-gold, but is it based on anything substantial?

I`ll keep an eye on London Gold Exchange to see if they put anything out about the situation.

Geoff

Posted by: betrdanevr

I wrote Ratebygold and got this reply by e-mail:

In short, INT Gold is behind this. Now, what they're basing this move on, I don't know. I tried to telephone them but they had closed. In fact, they closed earlier than what is posted on their web site (6:00 p.m. CST). Ratebygold said that INTGold just hasn't updated their web site to reflect earlier closing hours.

The Number Two currency thinks the Number One currency is going to go down? I think not.

Quote:

Lets us put it this way. Ratebygold currently funds 750K a year in debit
cards using e-gold and another 250K in intgold. So its not to our advantage
to stop using e-gold if you know what I mean. Intgold has just stopped
accepting e-gold as payment and informing all their exchangers/resellers
suggesting to stop using e-gold because of the possability soon you will
not be able to outchange it. Intgold has also just ceased exchanging e-gold
for intgold. I mean the #2 currency in the business should have a little
insight on the matter.

Now, with that information you can be the judge. Intgold just stopped accepting e-gold as payment. Wont trade e-gold for intgold nor accept it as payment. Something big is about to happen. We were told not to accept it as payment either as we may not be able to outchange it soon.

Posted by: Cashier

Don't anyone think, that this may topple No 1, and No 2 will be at No 1 position.

Does that seem logical......

I think it does.......

Posted by: Salty

No exact clue of what is really going on behind the scene.
First, a member's post about EG,
Then IG's reaction.

Seems the true FACTS are there are more complaints over IG, and IG just put down its "merchandise" page which is accused of promoting ponzies/scammers by members.

Posted by: Berta

From the E-told newsletter www.e-told.org
Sat. 22nd 2005

Attack on e-Gold creates avalanche of rumors in forums
The rumors are untrue - e-Gold Support

If there is one thing this arena does not need is a panic run on out-exchanges from e-Gold. From what is known the tidal wave of rumors and thoughts from hundreds of others was brought on due to a twist in words.

The story started out as a warning that bank accounts with Bank of America belonging to an individual were closed due to e-Gold's name appearing in the memo field. This information has been confirmed. What caused the account closure has been linked to have the e-Gold name in the memo.

The bank wire was placed to a reputable gold exchanger. The name of this exchanger will be excluded so that they will not be harassed flamed by anyone. The exchanger had always wanted clients to place the e-Gold account number and invoice number in the memo field.

Since this bank wire was intercepted the exchanger has been told to remove this requirement and according to the source they have compiled.

The women who is representing the Security and Investigation Division of Bank of America in Florida, informed the bank account holder that the accounts were on the bank's radar screen for a number of reasons.

The main reason was the large weekly wire transfers the account holder was receiving from PIPs [Pure Investors] since November 2004.

The second reason given was that the account holder had started to sell his own PicPay. This created another red flag for the account holder as the bank was receiving more than $10,000.00 a day to this account.

The third red flag happened to be that the account holder began to sell e-Gold and PicPay in November and was actually sending international bank wires out of a personal bank account. It is not known how large some of these transactions were but you can picture the idea being placed in the minds of bank officials that funds were being laundered out of the USA.

Being that a personal account was used to send many bank wires out of the country, triggered the closure of the accounts. The bank was the one that mentioned the name of e-Gold, not the account holder. The reason given was that e-Gold.com and the account holder were not in compliance with a government web site called MSB.GOV

The Money Services Business [MSB.GOV] is a part of the Financial Crimes Enforcement Network (FinCEN), which was created in an attempt to stop Internet crime involving financial situations. This organization is designed to keep money services in compliance with US legislation.

As all Internet users should know, the Patriot Act of 2002 has created many changes in the methods used to do business in the USA as well as other countries. Banks are now responsible to police their own account holders. It seems the word e-Gold is being used by the bank is being used in reference to the eCurrency arena in general.

Even after the account holder mentioned INTGold and e-Bullion the bank representative did not understand those but only referred to e-Gold. According to the bank official all will change in February. But this does not mean that e-Gold is closing.

What will change may not even take place in February. It could take longer. What is likely to change is the way US residences are accepted when dealing with e-Gold. Presently online currencies like EMO and PayPal are required to ID account holders.

The head of this operation is the Financial Crimes Enforcement Network, which is part of the Department of the Treasury. The purpose of this site is related to the new money-laundering laws and the Patriot Act. Banks are being orders to report all suspicious findings when it comes to possible terrorist activities. Likely the closing of the accounts was more related to this reason.

The account holder has agreed that the business of exchanging e-Gold and PicPay was definitely against the Government web site and has accepted all responsibilities for their action. The following is found at the Financial Crimes Enforcement Network web site.

FinCEN Issues Guidance on AML Program Requirements

December 8, 2004 - The Financial Crimes Enforcement Network (FinCEN) today issued Interpretative Guidance clarifying that a Money Services Business must establish, as a part of its anti-money laundering program, appropriate risk-based policies, procedures and controls sufficient to address the risks of money laundering and the financing of terrorism posed by its relationship with foreign agents or foreign counterparties. The Guidance will be published in the Federal register and become part of a new appendix to FinCEN's regulations that will contain FinCEN's interpretive rules.

Since April 2002, Money Services Businesses have been required to establish anti-money laundering programs to guard against money laundering and terrorist financing. Today's Guidance specifically requires that, to the extent a Money Services Business uses relationships with foreign agents and counterparties to facilitate the movement of funds into or out of the United States, the Money Services Business' anti-money laundering program must reasonably address the risks of money laundering and the financing of terrorism posed those relationships with foreign agents or foreign counterparties. The Guidance applies only to Money Services Businesses required to register with FinCEN, as these are the entities most likely to use foreign agents or foreign counterparties in their operations.

"This Interpretive Guidance should clarify Money Services Businesses anti-money laundering program requirements when it comes to having proper risk-based policies and procedures in place when dealing with foreign agents or counterparties," said William J. Fox, Director of FinCEN. "It is critical that MSBs understand the importance of meeting this requirement in order to protect the international gateways to the U.S. financial system."

The Guidance requires that a Money Services Business' anti-money laundering program be capable of detecting the abuse of products and services offered through foreign agents and counterparties by establishing procedures for: (1) conducting due diligence on foreign agents and counterparties; (2) risk-based monitoring of foreign agents and counterparties; and (3) taking corrective action or terminating relationships, as appropriate.

Money Services Businesses will be expected to achieve full compliance with the Guidance within six (6) months from the date of this announcement.

The above states that all business in the United States who offer services that involve the movement of money through wire transfers to or from out of country establishments are required to complete certain criteria pertaining to the establishment of the business the owners are offering. The account holder in question in this report did not fill out any forms and was completely taken by surprise regarding the MSB.GOV web site.

It is likely that the word e-gold has been placed on a list of words that are red-flagged regarding international wire transfers. But from looking at how the bank handled this situation it seems fairly clear that the accounts were frozen based on the activities rather that the word e-Gold.

It is logical that Pure Investor's PIPs program has gotten the attention of many in higher places as well. The Government remains quiet about the high yield arena, but rest assured they watch and learn. The Feds are more than likely up to par with Freelandopps, EvoCash, PIPs, and many more of the highly organized programs that are or have been operating in the investment arena.

The immediate problem this rumor has created might cause a rush on exchangers to cash out e-Gold accounts. There is no need for panic. E-Gold can not be forced to close. The above ruling from the Financial Crimes Enforcement Network is basically only going to deal with US residences who are using the e-Gold system.

The above ruling also states businesses have six months from the date of the ruling to comply. That means until May 8, 2005 the Financial Crimes Enforcement Network has no means available to commence whatever they plan to do.

What will likely happen is that e-Gold will eventually give in and comply with the MSB and will ID all US residents accounts. To do this is no big deal and since it is being done by other online currencies, it should be expected that e-Gold will add this feature in the future.

For now it is business as usual. The e-Gold system is open for business. Ponzis and scams continue to take in your gold. It seems that e-Gold may have to deal with the problems brought on by the MSB, but e-Gold is not the problem why people lose money. The problem is more aligned to investors not wanting to understand that basically every program they enter is a Ponzi.

Posted by: edward

I think it's ironic that the main rumors are being spread by INTGold itself. INTGold is a direct competitor of E-gold.

That should tell you right there that it's probably only a rumor and should be left at that

Posted by: betrdanevr

I have to agree with you, Edward, particularly since Ratebygold is justifying their move (apparently) only on the decision made by INT Gold and INT Gold's recommendations not to deal in e-gold!

That being said, Phaedrus, of Talk Gold, has pointed out that INT Gold is the only e-metal that has allowed direct in- and out-exchanges to another form of e-metal, that being e-gold, while every other one required the use of a middle-man, the exchangers.

But I think RBG's stance as leader of the pack and making their decisions on how INT Gold "oughta know," may bite them in the hind end and doesn't seem to be a healthy move.

Posted by: candy

I have read quite a few posts on the various forums about individuals problems with IG and their lack of response to problems.
I have not read many posts about problems with EG.
Based on that I conclude that if anyone is going to close in Feb it would be the e-currency that is making getting funds out difficult.
Anyone have knowledge of how long people are waiting for their IG debit cards?

Posted by: aqua

Another update, as posted by Rate By Gold admin on their forum

Quote:

Yesterday ratebygold issued an update and there is one thing that needs to be addressed that was misunderstood. "Something big is about to happen with e-gold and possibly e-bullion (large majority of e-bullion is backed by e-gold)". E-bullion has contacted us and said they are not associated, nor does their "backed by gold" have any relationship with e-gold or "backed by e-gold". E-bullion has also confirmed that "if" something would happen to e-gold it would not effect their business. With that said, and understood, there should be no worries with e-bullion. Now, back to business. A lot of people, like the talkgold admins, are implying that there are rumors about e-gold. These are not rumors spreading. What we are telling you is that in the near future there may be a possibility you might have trouble cashing out your e-gold. There will be many exchangers soon that will not process your e-gold to cash transaction, or e-gold to card transaction. This is not a pissing match between intgold and e-gold. Other sites, like talkgold, want you to believe that intgold is starting rumors trying to ruin e-golds business. Talkgold itself is full of rumor mongers and knowledge less posters. This is simply not true and being implied because their admins and posters ignorant to the exchanging/funding business. E-gold has been said to be contacted by numerous people and continue to play dumb on the matter. They do admit however there are changes coming soon. Like any business, when your in business for a while, you make connections and are available to information others simply do not have (Example, most exchangers had the heads up that evocash and x-changers were closing). At this time intgold has stopped processing e-gold to intgold orders. They have also stopped processing e-gold to debit card orders. Debit card funding and selling debit cards is our main source of revenue. Therefore on Jan 27th 12:00pm gmt ratebygold will not accept e-gold as payment on our site. Like we said before, this is not an argument of currency 1. is better than currency 2. If you imply this you are distorting and distracting from the information brought forth about e-gold and the outchange process. What would we do? As of Jan 27th we will no longer own or process e-gold. As for you a customer, we understand you may need to use e-gold. Just dont keep thousands of dollars to process and outchange just in case you have trouble getting rid of it. Do we hope e-gold closes? E-gold processes about 75% of our revenue right now. It is not helping us dropping the currency. And another fact for you, Intgold not accepting e-gold is not enhancing their business either. Being online, you would want to except as many payment options as possible to reach a broader customer database. All companies that chose not to accept e-gold will simply target other currency holders for business. So this article is not full of malicious intent like other sites want you to believe. So be advised the coming weeks will be exciting. Keep a watchful eye and base your decisions on what you see. Thank you, our thousands of customers for your support.

Posted by: rickde

I listen to the audio tape
And just wondering whether it’s not e-gold that is in trouble but
the exchange services.
Are the e-currencies exchanger in the USA licensed. If not this could be what is happening in Feb.
all exchanger will have to be licensed in each country that they do business in.

To be a e - currencies exchanger in Australia you have to be licensed by ASIC.

I have found a couple of exchangers since ASIC intervention and I wrote to one.
Dear Sir,

Q. I notice you have a PO Box in Bondi Junction NSW. So are you an Australian
exchanger or USA.

A. We are a Panamanian company. We have principal offices in several countries,
however PO box in Australia is no longer current. Our Aussie operations have
undergone a few changes due to the ASIC inquiry.
Q. As my usual Exchanger has closed business due to some new requirements
demanded by AUS government. do you meet those requirements

A. The short answer is Yes. We use a company in Australia which is already
licensed by ASIC.
I personally can’t see the logic of issuing the exchanger with a Licensed and
then closing down e-gold.

Posted by: forwardone

As the e-gold site is down at the moment I thought I`d take a look to see if LGE had anything on the situation, but they haven`t.

The last update they had was a few days ago:-

Quote:

e-gold and e-Bullion Rumours

We are being contacted by concerned members who are reading rumours about the demise of e-gold and e-Bullion. Our own sources assure us that these rumours are false and designed to unsettle the industry (for reasons unknown at this time).
There might be a problem with the Bank of America, not accepting bank wires with ’e-gold’ or various instructions relating to digital currency, but we cant substantiate this issue and even if it were true it is not going to result in the closure of e-gold.
We have a news release from e-Bullion denying the rumours, but have received nothing yet from e-gold. There have been rumours like this is the past and generally it is an HYIP or investment scam behind it (trying to divert attention from their ailing program).

More news (if any) will follow. But our advice is to ignore the panic.

Please do not enter into e-mail debate regarding this subject as we are inundated with e-mails as it is. Watch this space for updates if you are still worried.

Geoff

Posted by: jojomataketa

Quote:

Originally Posted by forwardone

As the e-gold site is down at the moment
Geoff

It is working OK now.

Cheers,
jojomataketa