Carey Dayrit

Been busy for a while doing web development projects, there's a recent news that Dr. Douglas Jackson, founder of e-gold was indicted of money laundering leading to funding of terrorist groups, aiding child pornographers, credit card fraud. As I see in these past few days I am getting the real picture of the story, my teacher in college always tell me in every action there's a reason, so the question rely on "why". "Why would the US govt want an indicment on the owners of e-gold ?"

first of all here's how e-gold works.

1. Create an account
2. Fund your e-gold thru an exchanger - the exchanger will fund your e-gold in exchange for your local currency, I want to buy $10 worth of gold or equivalent euros. you would wire money to the exchanger. After it has been confirmed the exchanger will fund your e-gold account.
3. You can send e-gold to other accounts by any currency worth of gold, grams or ounces of gold. Buy online without a need of credit card.
4. Withdrawing funds - you will again go to the exchanger sell your e-gold, some exchanger allows Western Union or depositing directly to your bank account.

First accusation "E-gold used as funding Terrorsit Group", In my opinion based upon the background of Dr Jackson he would not allow such thing as he served the US millitary. If e-gold have been used as an instrument of terorist groups, isnt it the duty of US government to track down those terrorist and not the responsibility of owners of e-gold. How can the e-gold system know the accounts of terrorist unless a list of suspected terrorist had been given by the US govt to e-gold owners. E-gold will allow sending to other e-gold accounts unless reported. Also on their TOS unless a court order has been given those accounts will be frozen.

If you would see clear the picture for example:

Asian Terrorist aiding Middle East Terrorist by e-gold.

1. Asian Terrorist have an e-gold account, will buy e-gold thru an exhanger in Asia using bank wire.

2. Asian Terrorist will send e-gold funds to Middle East Terrorist

3. Middle East Terrorist will sell his e-gold thru an exchanger in Middle East using bank wire.

Even of those e-gold accounts where false identity the real identity would fall on the bank wire statement. As e-gold doesnt provide bank wire, exchangers are a different entity of the operation of e-gold. The exchangers in Asia has the data of the Asian Terrorist and the exchanger in the Middle East has the data of Middle East terrorist.

The problem is the US govt has no jurisdiction on those regions. There lies a problem they want to stop it but how. The funding of the terrorist group will be used for the supply (food, arms and recruiting people). Since they have no jurisdiction they would stop the medium which is e-gold.

Which they have jurisdiction as the company is in US soil, poor Dr. Douglas Jackson.