E -Gold Indicted as Authorities Go After Online Payment, Digital Currency Systems

By Brian Monroe

If online payments system e-gold, Ltd. is convicted on charges of operating as an unlicensed money services business and other crimes, significant changes could be in store for similar digital currency businesses and the banks that service them. The U.S. Justice Department on April 24 charged e-gold, a related money exchanging operation, and the company's founders with money laundering and operating an unlicensed MSB for allegedly allowing their payment system to become the currency of choice for scam artists, fraudsters, and child pornographers. E-gold claims it's not a bank, MSB, or any type of financial institution subject to anti-money laundering...