US Government Forces E-gold Redemptions - Seizes Gold

[R.A. Hettinga]

<http://www.moneynetnews.com/articles/54/1/US-Government-Forces-E-gold-Redemptions---Seizes-Gold/US-Government-Forces-E-gold-Redemptions---Seizes-Gold.html>


Moneynet News

US Government Forces E-gold Redemptions - Seizes Gold

By MoneyNet Producer | Published  Today | Daily News Cast | Unrated

MoneyNet Producer


US Government Forces E-gold Redemptions - Seizes Gold


===

 In an unprecedented move on or just before Wednesday May 9th, 2007, the
United States of America has forced Omnipay et al E-gold to redeem all the
gold backing the 58 previously frozen accounts owned by e-gold, 1mdc,
icegold  and a handful of other exchangers and customers to be liquidated
effective immediately to a us dollar account owned by the federal
government.

According to the reduction in the gold bar list, the bar count

has dropped by 48 bars of approximately 400 oz each between May 3, and May 9.

This redemption totals USD $11.357 Million.

Date       Gold Grams    ($ Value)

03-05-07    3,489,436      77.015 Million

09-05-07    2,974,871      65.668 Milllion

Gold Bars value Sold: USD 11.357 Million

MoneyNetNews has learned from a reliable source that e-gold has been ordered

to hand over a fresh copy of the customer database when the redemption

is completed.

MoneyNetNews cannot confirm if all of the 48 bars redeemed account for

the forfeiture action of the United States. It is possible that a part

of this activity can be accounted for by increased volatility in e-gold's

general market.

Not only was E-gold / Omnipay ordered to convert gold (and silver) holdings

in the seized accounts into US Dollars, but that included their own

(Omnipay's, and E-gold's) frozen (seized) accounts. This will ultimately

result is great losses of value over time even if the victims of the seizures

are found to be innocent due to the in progress bull market in gold and bear

market in US Dollars.

The seizure order appears to be unrelated to the criminal case in progress

against E-gold and OmniPay in that the seizure of the accounts by the
government

was done under a (separate) civil case, for which the Government has yet to
file

anything.

By doing so, the government was able to seize accounts without having

to reveal anything to the owners of the accounts themselves. By law,

the government has 30, and possibly up to 90 days to file a complaint.

Until the government civil filing is done, none of the victims of the seizures

can possibly do anything to defend themselves, not even obtain information as

to why their accounts have been seized, or what they would have done wrong.

None of the victims of the account seizures have been advised of anything

officially at this time.



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R. A. Hettinga <mailto: rah at 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'