Subject: Freematt Interviews Financial Cryptographer Ian Grigg It's too bad you didn't ask the juicy questions. Systemics has recently become embroiled in a lawsuit with e-gold and/or DigiGold, as the emails below describe. Former Friends Become Enemies! Servers Being Seized! Ian Trapped in Anguilla! And all you can think of to ask is, where do you think you'll be in ten years? which authors influenced you? You call this journalism? Come on, enquiring minds want to know the dirt.

Date: Mon, 21 May 2001 18:02:40 -0400 (AST) From: Ian Grigg <iang@kostunrix.cryptohill.net>

Dear WebFunds Users,

I regret to announce that Systemics Inc will not be supporting DigiGold Ltd from 25th May, 2001, 11:00 a.m. AST due to termination of the contract between the two parties.

Unfortunately, we cannot afford to continue to cover the costs for services consumed by DigiGold Ltd.

In operational terms this would mean that the Issuance Server operated by Systemics Inc will cease to accept payment requests for the Ricardian Contracts issued by DigiGold Ltd on the above date & time. These are, in brief, the 4 metals.

Also, the books that were trading on the Exchange will be "closed," and any orders returned in their current state to the user.

Date: Fri, 25 May 2001 02:07:03 -0400 From: Ian Grigg <iang@systemics.com>

Due to representations from interested parties, Systemics Inc have decided in good faith to maintain in operation (at own expense) the Issuance Server that handles the DigiGold contracts for one more week.

Apologies for the brief email, but, we are somewhat constrained in discussing the situation, as much as we are constrained from continuing to provide the service at own expense, on behalf of others.

Date: Tue, 29 May 2001 13:13:54 -0400 (AST) From: Ian Grigg <iang@kostunrix.cryptohill.net>

W.r.t. to the terminated agreement with the e-gold group in general and the DigiGold company in particular, papers have just been served on myself and Systemics (as of 12:25 Tuesday 29th May 2001).

The nature of the papers is unclear at this stage, as they are long and legally worded. They do speak of DigiGold servers and injunctive relief and so forth, as well as apparently forbidding me to leave the island of Anguilla! On my first reading, I found no mention of payment towards outstanding and ongoing support costs. No doubt, the bevy of lawyers they have retained will probably leave little over for operations.

Support for all projects will be a little loose in the forthcoming period as I'll have to devote much time to understanding and in all probability defending Systemics and myself from these filings.

Even up to minutes before, there was a dialogue going on in email with Barry Downey, his two lawyers and the management team of DigiGold, in an attempt I thought to reach some sort of understanding as to their position (potentially leading to a resolution).

However, the papers were filed on Friday last, and given the weight of the documents served obviously took some time to prepare. This is not a light action on their parts.

In summary, I will be distracted. I'll attempt to hand over support of the projects to someone else so as to minimise the disruption caused to others.

From: "Jeroen C. van Gelderen" <jeroen@vangelderen.org> Date: Sat, 09 Jun 2001 12:21:05 -0400

L.S.

Attentive users will have noticed that the new issuance server in the US of A has had hickups over the past couple of days.

Having got back from my European adventures I have had a look at the problem that caused the Digi* and the other commercial issues to not work.

It turns out that the Linux networking did not play well with the Systemics Issuance Server software and solving that particular problem involved digging in the Linux source code to find out what was wrong. Open Source software indeed has it's advantages!

The good news is that I've put in place a bandaid solution that should allow the server to function for the time being albeit not optimally.

A more permanent and reliable solution would be to move the servers back to our trusty FreeBSD operating system running on hardware in Anguilla.

The bad news is that if we move the server to Anguilla now we will not be allowed to move it out again by injunction of the court of Anguilla.

This of course would severely limit Systemics' operational capabilities as any major connectivity problems here in Anguilla could not be effectively addressed.

The worst news however is yet to come... :

We have to anticipate that the e-gold litigants will attempt to seize the server as: - they have made claims to Systemics intellectual property, - the injunction clearly states that the server is not to leave the 25-by-6 mile rock known as Anguilla.

This puts us in a situation where we are forced to separate the Digigold currencies (AGG, AUG, PDG and PTG) from the other commercial issuances in order to protect the interests of Systemics' paying customers.

At this stage our distinguished team of Financial Cryptography engineers are working around the clock to come up with a solution (if you didn't get that, it means we don't have a clue as to how to attack this problem just yet).

More to follow.

Cheers, Jeroen