Comments on: E-Gold charged with money laundering

Online payment company and its owners are accused of serving as a "highly favored" method of payment by scammers and child porn vendors.

[wfaler]

Does that mean the Federal Reserve can be held accountable as well?

As far as I understand it, E-Gold is only a currency, and purports to be nothing more and nothing less.
With that being the case, does this mean the Justice Department will indict the Federal Reserve for allowing illegal transactions to be conducted in US Dollars?

[solrosenberg]

My thoughts exactly

Think of all the undesirables using Federal Reserve Notes for their dastardly deeds. Drug dealers, prostitutes, pornographers, lobbyists...

This seems to be more a case of the government not liking competition. How ironic coming from the same "Justice" Department that's always trying to "promote competition" with enforcement of the antitrust laws.

[ReVeLaTeD]

You missed the (underlying) point

The real issue is not whether or not Egold can be considered currency. The issue is whether they're licensed properly to conduct business with a medium used as currency. This would be the same thing as a bank who is opening accounts without asset backed notes. Ultimately you can't accept currency and give back a different type of currency without the proper backend. That's laundering and it's illegal.

[tatepc]

true

Under this argument.. every financial institution could be held liable for any financial criminal act, by any one of their members, even if no fault of their own.

ludicrous.

Im sure most judges would agree.