The U.S. government has confiscated some e-gold related funds on the pretext of failure to obtain a license as a "money transmitter," as Ian Grigg reports. Apparently e-gold has already had to put up with "approximately 300 summonses, subpoenas, and other requests for information." Unless they are counting routine stuff, that sounds rather like harassment. The feds are arguing that the U.S. portion of e-gold, G&SR, is a "money transmitter" even though the U.S. Treasury has refused to recognize e-gold as a "currency."
Thanks to the out-of-control Washington D.C. bureaucracy, the U.S. is becoming a poor place to do business if you have an innovative business that rubs some people in D.C. the wrong way. For example, if you claim that you have a new form of money that competes with inflating U.S. dollars.
Another thing that may rub feds the wrong way is the embarrassing fact that e-gold has appreciated by over 100% compared to the U.S. dollar since 1999. In other words, if you held $1,000 worth of e-gold since 1999, it would be worth over $2,000 now. It's closer to the truth to say that the dollar is worth about half what it was in 1999 than to say that e-gold is worth twice as much. Which currency is the funny money?
Interestingly, Yahoo Finance considers gold (although not e-gold in particular) to be a "currency" for the purposes of their currency converter.