E-Gold Indicted For Fronting Fraudsters

Security Watch says that E-Gold has been indicted on various charges including money laundering, conspiracy and operating an unlicensed money transmitting business.

According to an indictment, handed down by a Washington federal grand jury and unsealed on April 27, E-Gold is a preferred method of payment by investment scammers, credit card and identity fraudsters, and online sellers of child pornography. E-Gold allegedly conducted funds transfers on behalf of such customers knowing that the funds were the proceeds of unlawful activity, thus violating federal money-laundering statutes.

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