Bold Due Diligence Moves At e-gold Bolster A Positive Long Term Outlook

It now appears that Dr. Jackson and the team over at e-gold Ltd. are making some bold due diligence moves in order to stop their digital gold currency from being used by HYIPs, Ponzi scams and AutoSurf programs.

These preventative measure will certainly not create an easy road ahead for the e-gold administration and their previous ponzi customers and I can’t image the mountain of paperwork now being created, but e-gold’s new actions seem to be exiting the HYIPs and driving them away from e-gold.

Three cheers for e-gold!

The e-gold tool being used in this crack down is termed the ‘value limited account’. Also known as a ‘blocked account’, it is quickly becoming the Ponzi’s worst enemy.

What does it mean when your e-gold account gets a value limit? Here is what might show up in your email:

“Your account has been blocked under our Rights of Association clause in the account user agreement.”

e-gold Account User Agreement: 4.6. Right of Association – Issuer reserves the right to refuse service to particular individuals or entities, at its sole discretion, with or without cause.

Unless the problem is corrected, a value limited account is 100% useless for any future business. Blocked accounts cannot accept any incoming funds.

If you try to send a payment from a valid account to a blocked account and you will get a message just like this:

Incoming Spends Blocked on Recipient e-gold Account [receiver's account]. A Block has been applied to e-gold Account XXXXXX. No payment can be made to this account while a block is in place. If you have any questions regarding this block, please direct them to your intended counterparty rather than to e-gold.com. Please note that this message does *not* imply that your account is blocked.

Are all the funds in this blocked account ’seized’, removed or unavailable?

NO. Blocked account holders can simply comply with e-gold’s due diligence request and unblock their legit account. Its a simple procedure and along those lines here is the next email message you will receive after your account is blocked.

In order for us to assist you with the block we will need due diligence documents. Please mail (or preferably, use a courier service such as Fed Ex or DHL) original notarized copies of all of the following information:

a) A signed and notarized affidavit listing: Name, address, and telephone number for the owner of e-gold account XXXXX
b) Copy of a telephone or utility bill that has the same address stated in item A.
c) Notarized copy of Passport or Driver’s license for the account owner.
Addressed to:
G&SR
175 East Nasa Blvd.
Suite 300
Melbourne, FL 32901
Attn: Due Diligence Unit
Please include a copy of all email correspondence on this matter with your due diligence documents. Thank You, e-gold Service

If the account is what I call a ‘legit user’, and the account holder has forwarded all the requested items, the block is then removed and your next email says something like this:

“We reviewed your account and the block has been removed…”

However, if the account is directly related to HYIP, AutoSurf or Ponzi scams, even after the user has presented valid ID information that account may still remain blocked and the account holder is effectively NOT invited back for any further business.

“…the blocks will not be lifted from your accounts under the Rights of Association clause in the account user agreement.”

It seems e-gold Ltd. might be clearly saying, “We don’t want that kind of business”.

Even with all of these blocked accounts it is important to remember that NO funds are being seized by e-gold. A ‘value limit’ does not mean your balance is lost.

With the value limit on the account and an association with an HYIP related business, most likely that account holder will be abandoning that account. E-gold will lose that user’s business, but IMHO its a very small price to pay for long term positive growth and success.

Not that my opinion matters much, but I’d like to commend the e-gold team for their bold actions and wish them the best of luck for their future success.

How are all those blocked users recovering the balances from their value limited accounts?

The “Workaround”

Why is it better to have an old e-gold account rather than a new one? Older e-gold accounts, will allow the account holder access to toggle a switch within the account admin area and allow the account to “accept spends from blocked accounts”. A new brand new e-gold account does not permit this action. Older accounts can ‘cash out’ the blocked funds by receiving the spend. Brand new accounts are not yet ’seasoned’ and will not accept blocked funds.

There are even people advertising this as a ‘paid service’ .

Hi there. I have an old e-gold account 894XXX and can help you to transfer money from blocked accounts. Fees for this service (transferred amount – %):
1. From $1 to $10 – 10%
2. From $11 to $50 – 7%
3. From $51 to $100 – 5%
3. From $101 to $500 – 3%
3. From $501 and more – 2%

Blocked users recovering their funds are now leaving e-gold and moving to alternative currencies such as Liberty Reserve or V-money. Both of these currencies seem to be not only allowing ‘investments’ but catering directly to the HYIP gaming business. Its also worth noting that neither of these digital currencies has AT&T servers located in the US like e-gold. These are non-US operations and welcomed by the industry.

Do you think bold changes like this will ensure a healthy and happy future for e-gold?

To be continued…