indictment

The Criminal Precedent that Could Curb Bitcoin’s Enthusiasm

[Reading Time: 10 minutes]

In July of 2008, after months of wrangling with the Department of Justice (DOJ), E-Gold, Ltd.’s senior management and directors pleaded guilty to the following charges:

• Conspiracy to Launder Monetary Instruments (federal)
• Conspiracy to Commit an Offense Against the United States (federal)
• Operating of Unlicensed Money Transmitting Business (federal)
• Transmitting Money Without a License (District of Columbia)

What does E-Gold have to do with Bitcoin?

Well, as soon as I describe what E-Gold was and did, you’ll see that the parallels with Bitcoin and its crypto-brethren are remarkably similar.  I will be quoting from the indictment itself, underlining Bitcoin-relevant language, and adding comments in brackets:

1. E-Gold was an issuer of “digital currency,” defined as a medium of exchange offered over the Internet Continue reading →