April 2007 - cypherpunks-legacy

Get out of the obese crowd
by Fern Benitez 27 Apr '07

27 Apr '07

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Digital currency firms face money laundering charges
by R.A. Hettinga 27 Apr '07

27 Apr '07

<http://www.infoworld.com/archives/emailPrint.jsp?R=printThis&A=/article/07/…> InfoWorld Digital currency firms face money laundering charges EGold and Gold & Silver Reserve are accused of operating without the proper permits as well as using their digital currency operations to launder money By Grant Gross, IDG News Service April 27, 2007 A grand jury in Washington, D.C., has indicted two digital currency companies and their owners on charges of money laundering, accusing the companies of helping to fund illegal activities like child pornography and identity theft, the U.S. Department of Justice announced Friday. The four-count indictment, handed down on April 24 and unsealed Friday, targets E-Gold; Gold & Silver Reserve; and their owners Douglas L. Jackson, of Satellite Beach, Florida; Reid A. Jackson, of Melbourne, Florida; and Barry K. Downey, of Woodbine, Maryland. The defendants face charges on one count of conspiracy to launder monetary instruments, one count of conspiracy to operate an unlicensed money transmitting business, one count of operating an unlicensed money transmitting business under federal law, and one count of money transmission without a license under D.C. law. The DOJ also obtained a restraining order to prevent the defendants from unloading their assets as well 24 seizure warrants on more than 55 accounts believed to be property involved in money laundering and the operation of an unlicensed money transmitting business. The restraining order does not limit the E-Gold operation's ability to use its existing funds to satisfy requests to exchange E-Gold into national currency for customers of nonseized accounts or its ability to sell precious metals, the DOJ said. E-Gold's digital currency, called E-Gold, functioned as an alternative payment system and was purportedly backed by stored physical gold, the DOJ said. Customers seeking to use the E-Gold payment system were only required to provide a valid e-mail address to open an E-Gold account, and no other contact information was verified. Customers could then fund their accounts in a number of ways and convert national currency into E-Gold. Account holders could access their accounts through the Internet and conduct anonymous transactions with other parties anywhere in the world. The indictment alleges that E-Gold has been highly favored by operators of investment scams, credit card and identity fraud, and sellers of online child pornography. The defendants conducted funds transfers on behalf of their customers knowing that the funds involved were the proceeds of illegal activity, the DOJ said. The defendants operated the E-Gold operation without a license in the District of Columbia or any other state and without registering with the federal government and thereby violated federal and state money transmitting laws, the indictment said. The conspiracy charge in the case relating to money transmitting and the federal violation of operating an unlicensed money transmitting business each carry a maximum sentence of five years in prison. The District of Columbia Code violation for money transmission without a license carries a maximum sentence of five years. The conspiracy charge relating to money laundering carries a maximum sentence of 20 years in prison. The case is being investigated by the U.S. Secret Service with the assistance of the IRS and the FBI. -- ----------------- R. A. Hettinga <mailto: rah(a)ibuc.com> The Internet Bearer Underwriting Corporation <http://www.ibuc.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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E-Gold Indicted for Money Laundering, Illegal Money Transmitting
by R.A. Hettinga 27 Apr '07

27 Apr '07

<http://www.pr-inside.com/print107629.htm> PR-inside.com Digital Currency Business E-Gold Indicted for Money Laundering and Illegal Money Transmitting 2007-04-27 21:39:19 - WASHINGTON, April 27 /PRNewswire-USNewswire/ -- A federal grand jury in Washington, D.C. has indicted two companies operating a digital currency business and their owners on charges of money laundering, conspiracy, and operating an unlicensed money transmitting business, Assistant Attorney General Alice S. Fisher of the Criminal Division and U.S. Attorney for the District of Columbia Jeffrey A. Taylor announced today. The four-count indictment, handed down on April 24, 2007, and unsealed today, charges E-Gold Ltd; Gold & Silver Reserve, Inc.; and their owners Dr. Douglas L. Jackson, of Satellite Beach, Fla.; Reid A. Jackson, of Melbourne, Fla.; and Barry K. Downey, of Woodbine, Md., each with one count of conspiracy to launder monetary instruments, one count of conspiracy to operate an unlicensed money transmitting business, one count of operating an unlicensed money transmitting business under federal law and one count of money transmission without a license under D.C. law. Subsequent to the indictment, the Department of Justice also obtained a restraining order on the defendants to prevent the dissipation of assets by the defendants, and 24 seizure warrants on over 58 accounts believed to be property involved in money laundering and operation of an unlicensed money transmitting business. The restraining order does not limit the E-Gold operation's ability to use its existing funds to satisfy requests to exchange E-Gold into national currency for customers of non-seized accounts, or its ability to sell precious metals to accomplish the same, once approval has been received. According to the indictment, E-Gold's digital currency, "E-Gold," functioned as an alternative payment system and was purportedly backed by stored physical gold. Persons seeking to use the E-Gold payment system were only required to provide a valid email address to open an E-Gold account - no other contact information was verified. Once an individual opened an E-Gold account, he/she could fund the account using any number of exchangers, which converted national currency into E-Gold. Once open and funded, account holders could access their accounts through the Internet and conduct anonymous transactions with other parties anywhere in the world. The indictment alleges that E-Gold has been a highly favored method of payment by operators of investment scams, credit card and identity fraud, and sellers of online child pornography. The indictment alleges that the defendants conducted funds transfers on behalf of their customers, knowing that the funds involved were the proceeds of unlawful activity; namely child exploitation, credit card fraud, and wire (investment) fraud; and thereby violated federal money laundering statutes. The indictment further alleges that the defendants operated the E-Gold operation without a license in the District of Columbia or any other state, or registering with the federal government, and thereby violated federal and state money transmitting laws. The indictment alleges that this conduct occurred at various times from 1999 through December 2005. "As alleged in the indictment, the E-Gold payment system has been a preferred means of payment for child pornography distributors, identity thieves, online scammers, and other criminals around the world to launder their illegal income anonymously," said Assistant Attorney General Alice S. Fisher of the Criminal Division. "This indictment demonstrates that the Department of Justice, in cooperation with its law enforcement partners, will aggressively identify and prosecute those who knowingly enable and profit from transmitting the proceeds of criminal activity, online or offline." "Douglas Jackson and his associates operated a sophisticated and widespread international money remitting business, unsupervised and unregulated by any entity in the world, which allowed for anonymous transfers of value at a click of a mouse," said U.S. Attorney Jeffrey A. Taylor for the District of Columbia. "Not surprisingly, criminals of every stripe gravitated to E-Gold as a place to move their money with impunity. As alleged in the indictment, the defendants in this case knowingly allowed them to do so and profited from their crimes." "Today's indictment is the result of a two and a half year investigation by the U.S. Secret Service Orlando Field Office into an alternative payment system which has largely operated outside of normal banking industry regulations," said Secret Service Assistant Director for Investigations Michael Stenger. "This system has been exploited for more than 10 years by criminals who operate primarily via the Internet. Cooperation among investigators, including the IRS, the FBI and other state and local law enforcement, has enabled us to more effectively address emerging threats and evolving criminal methods, such as the use of electronic or digital currency to facilitate trafficking in illicit goods and services." "The advent of new electronic currency systems increases the risk that criminals, and possibly terrorists, will exploit these systems to launder money and transfer funds globally to avoid law enforcement scrutiny and circumvent banking regulations and reporting," said Assistant Director James E. Finch, of the FBI's Cyber Division. "The FBI will continue to work closely with the Department of Justice and our federal and international law enforcement partners to aggressively investigate and prosecute any, and all, persons or organizations that use these systems to facilitate child pornography distribution, to support organized crime, and to perpetrate financial crimes." "This is a new twist on laundering money through unlicensed money transmitters but it is nothing new for financial investigators," said Eileen Mayer, Chief of IRS Criminal Investigation. "The combined investigative skills of the law enforcement partners under the St. Cloud IRS Criminal Investigation and Secret Service Task Force proved to be a brick wall for E- Gold. We are proud to bring our financial expertise to this type of investigation that ultimately unravels fraud." The conspiracy charge in the case relating to money transmitting carries a maximum sentence of five years in prison. The federal law violation of operating an unlicensed money transmitting business carries a maximum sentence of five years in prison. The D.C. Code violation for money transmission without a license carries a maximum sentence of five years. The conspiracy charge relating to money laundering carries a maximum sentence of 20 years in prison. The case is being investigated by the U.S. Secret Service with the assistance of the IRS and the FBI. The case is being prosecuted by the U.S. Attorney's Office for the District of Columbia and the Computer Crime and Intellectual Property Section of the Criminal Division. Assistance is also being provided by the Child Exploitation and Obscenity Section and the Asset Forfeiture and Money Laundering Section of the Criminal Division. An indictment is merely an accusation and the defendants are presumed innocent unless and until proven guilty. Source: U.S. Department of Justice Disclaimer: If you have any questions regarding information in these press releases please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims contents contained in this release. -- ----------------- R. A. Hettinga <mailto: rah(a)ibuc.com> The Internet Bearer Underwriting Corporation <http://www.ibuc.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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Hate Study?
by Keri Slater 27 Apr '07

27 Apr '07

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Obesity is dangerous, stop it
by Guillermo Haney 27 Apr '07

27 Apr '07

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None
by Nostra2004＠Safe-mail.net 27 Apr '07

27 Apr '07

At 12:02 AM 4/27/2007, you wrote: From: Andrew Del Vecchio <firefox-gen(a)walala.org> Date: Thu, 26 Apr 2007 23:55:31 -0700 To: or-talk(a)freehaven.net Subject: Re: Tor nodes blocked by e-gold Organization: MPAssetProtection.com User-Agent: Thunderbird 1.5.0.10 (X11/20070306) Reply-To: or-talk(a)freehaven.net I was able to access my account as of a couple of days ago. Some tor nodes are in spam DBs, but only a few of them (as far as I know at least). Wikipedia has blocked tor nodes for close to a year now, as does some other sites. For this reason, I think it would be useful to make directory files compressed AND crypted, if possible/viable. Just my two rapidly devaluing Federal Reserve cents, though 8-). On 04/26/2007 10:49 PM, force44(a)Safe-mail.net wrote: > Hi, > > Since 24 hours, e-gold has decided to block all TOR nodes, and not > only. In fact they check 3 "spam databases" and if the user's IP is > in one of them, e-gold just declines any operation, people cannot > even login into their accounts. > About TOR particularly, I feel very strange that all exit nodes > would be listed in spam databases, as most of them (if not all) > don't accept sending mail requests. That is why I rather believe > that e-gold in fact fetches the TOR exit nodes list, and directly > block their IP addresses. The problem is with Tor. It supports hidden server functionality (which is being improved all the time) but not hidden exits, AFAIK. Hidden exit support might encourage more people to run them. It might also provide another possibility, opportunistic exits using neighbor-neighbor open hot-spot WiFi. Here is a paper I wrote some months back but have only circulated in a small circle, called, "CUCKOO - an opportunistic P2P exit node": http://rapidshare.com/files/28243850/CUCKOO-Draft2.signed.txt.html > > A friend, connecting from his home in Germany without TOR, without > any proxy, cannot enter his account as his IP address (a dynamic > one from a dialup provider) was listed 2 months ago for spam!!! > > A few people are already complaining that they cannot get into > their accounts, and so their money seems to be lost! E-gold was > already known to block accounts without any warning and > explanations, recently blocked accounts of all Iranian people and > KEPT their funds, now they automatize the scam process! E-gold is most certainly not a scam. But they have behaved foolishly, operating from US soil, and now are completely under the thumb of the U.S. government. Its highly likely that E-gold's operators have been served National Security letters in order to keep from the press what's really going on, which is that the U.S. dollar is under considerable financial pressure most of which is being kept out of the major news media and any economic safety means not under indirect control of the U.S. (e.g., gold-based) are being closed. As Alan Greespan noted in his seminal paper, "Gold and Economic Freedom," "An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense-perhaps more clearly and subtly than many consistent defenders of laissez-faire -- that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other. "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." http://digitalmoneyworld.com/e-gold-hits-the-wall-government-seizes-major-a… I don't agree with all the conclusions of this article, in particular that, "3. The only DGCs that operate from now on will: (a) Have no connection to the US (b) Have no USA users (exactly as Swiss banks have no USA users) (b) Will have higher ID requirements than e-gold currently does. " Its probably true the seizure will cause many to shy away from non-regulated currencies and payment systems (as our "masters" want) but others (e.g., eCache, https://ffij33ewbnoeqnup.onion.meshmx.com/doc.php) are sure to be emboldened by the audacity of the Secret Service. Nostra

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27 Apr '07

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Really? Yes, right here.
by Rosalba Garza 27 Apr '07

27 Apr '07

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Less weight - more pleasure and joy
by Brock Hargrove 27 Apr '07

27 Apr '07

Anatrim The latest and most delighting product for over-weight people is now available As could be seen on Oprah Did you know superfluous body kilograms kill more and more people every year? We believe you hate the unattractive appearance of those people and the low status they obviously have in modern society. Or, maybe, you can not resist a pressure of ruinous eating habits of yours. If you see it sounds familiar, then we have something for you! Here Anatrim comes, the later product for the elimination of your bodys extra weight. The most amazing thing is that Anatrim raises the quality of your life by making you crave food less and giving you better cheer. Read what people write on this product: "This is wonderful! Instead of always glutting myself with food and watching TV constantly I became rather more interested in doing exercise. Anatrim made me take a step up. I have a great form now and there are lots of men following me with their eyes!" Linda F., Washington "I tried some passive weight losing, you know, but to no purpose. I could not restrain my ravenous hunger. Once I heard on Anatrim in the commercial and I was really effected by the information. I had tried using it, and my wife said to me that I look very good now, 5 months later. 33 pounds off and its not a limit! And you know, the bedroom thing is cool, too." Dave Klark, Colorado Anatrim gives you an opportunity to understand that you don't need that much food. It raises your spirit, gives you energy, and attacks useless kilos. Especial thanks to its mighty original formula!! Pry out more information!

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by Berry Longoria 27 Apr '07

27 Apr '07

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