The Gold Rush

E-gold is a digital gold currency that allows for the instant transfer of gold ownership. Unlike in the case of credit cards, all payments are final and irreversible. There are currently more than five million e-gold accounts worldwide. Due to the anonymity provided to account holders it became a popular method for cybercriminals to turn illgotten proceeds into clean cash.

In July 2008, the brother of Joseph Yobo (the vice captain of the Nigerian national soccer team and one of the English Premier League Club Everton’s top soccer players), was kidnapped and a ransom of $10,000 was demanded in e-gold. This was clearly a new digital twist on an old crime. 

Also in July 2008, e-gold Ltd. and its three directors pleaded guilty to money laundering charges and the “operation of an unlicensed money transmitting business.” While e-gold’s executives are still to be sentenced, the company is confident that the business can reinvigorate itself.

In October 2008, e-gold made moves towards becoming fully legal by registering with the Financial Crimes Enforcement Network (FinCEN), one of the US Department of Treasury’s lead agencies in the fight against money laundering.