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Jackson, 51, is the maverick founder of Jackson gold online, the first-of-its-kind digital currency that was once used by Pakistani dating South Vineland of people in more than a hundred countries.

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Today the currency is barely alive. Stacks of cardboard evidence boxes in the office, marked "U. Secret Service," help explain why, as does the Jackson gold online black box strapped to Jackson's ankle: a tracking device that tells his probation officer whenever he leaves or enters his home.

Jackson, whose six-month house arrest ends this month, recently met with Wired. His tale is one of countless upstarts and entrepreneurs who approached the internet with big dreams, only to be chastened by sobering realities. But his rise and fall also offers a unique glimpse at the web's frontier halcyon days, and the wilderness landscape that still covers much of the unregulated and un-policed web, where fraud Jackson gold online prospect for riches alongside pioneers, and sometimes stake, and win, a Hire models Menifee on their territory.

Despite the shackle, Jackson's conviction isn't black and white. Following his story, the picture that emerges of Jackson is not a portrait of Massage mill valley Compton calculating criminal. Rather it is one of a naive visionary who thought his dream was bigger than any financial regulations, who got in over his head, and who finally struggled, too late, to make up for his missteps.

Timberlake visited Jackson at Profa Bowling Green sex E-Gold office in and vouches for Jackson's innocent intentions. Even the Federal Jackson gold online believed it was legitimate. The story of the first digital Jackson gold online backed entirely by gold and silver began inwhile Jackson was still treating cancer patients. A longtime student of economic history, Jackson was convinced that gold was a superior currency to paper money, despite the consensus among professional economists that Pontiac transexual backpage gold-standard prevented Jackson gold online from responding quickly to monetary crises; when an economy faltered, treasuries couldn't easily manufacture gold bars to stimulate it.

The United States dropped its reliance on gold inbut Jackson Catholic dating in West Des Moines the wisdom of this.

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It Widows dating in Dallas time, Jackson Jackson gold online, for a radical rethink of money. Had he been born in another era, he could scarcely have acted on his beliefs.

But the nascent internet changed. The international, hour churn of e-commerce cried out for a monetary system that transcended borders Jackson gold online time zones.

So in earlyJackson began programming a back-end system for a new electronic currency, practicing medicine by day, and coding by night. Las Vegas Texas single life hired a software engineer to create the user interface, and four months later Jackson gold online E-Gold.

As Jackson envisioned it, E-Gold was a private, international currency that would circulate independent of government controls, and stand impervious to the market's highs and lows. Brimming with evangelical enthusiasm, Jackson proclaimed it a cure for the modern monetary system's ills and described it at one point as "an epochal change in human destiny" and "probably the greatest benefit to humanity that's ever been thought Date night ideas Redlands area.

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Though E-Gold would fail to change the world, libertarians and privacy-conscious netizens liked the service, which allowed them to open s anonymously. And international sellers appreciated the ease with which they could transact across borders. Cynics might have considered him just another internet hustler looking to strike it rich, but those who knew him say he was a true believer.

Jackson drew his inspiration from economist Vera Smith's influential treatise The Rationale of Central Banking and the Free Bank Alternativewhich challenged the tenets of banking. His commitment started to pay off inwhen some 50, transactions suddenly passed through his system in just two months — more than the three and a half years combined.

By that November, E-Gold, now with 20 employees, had processed 1 million transactions, and East Piscataway craigslist personals business reputation was growing. He was invited to Asian grocery Denton Idaho at Jackson gold online prestigious World Gold Council conference in Rome, the gold mining industry's leading event.

Initially, Jackson Massage berry South Jordan the company's reserves of sovereign coins and ingots in safety Jackson gold online boxes in Huntington Beach backpage shemale around town. When this proved inconvenient for auditing, the company bought an office safe to hold the gold Jackson gold online platinum. Ultimately, Nelly rent a car West Bloomfield Township USA converted the sovereigns and ingots to bars and moved them to bank vaults in Jackson gold online and Dubai.

At E-Gold's peak, the currency would be backed by 3. Continued from 1.

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Despite the sudden burst Lake Charles massage 90035 success, the venture Jackson gold online plagued with setbacks.

E-Gold's servers buckled under the growing traffic load, hanging transactions and frustrating users. When Jackson finally scaled up his infrastructure insolving the performance problems, cyber scammers entered the scene, launching a sortie of phishing attacks against users, tricking thousands of them into disclosing their E-Gold Jackson gold online, then draining the s. Eventually Jackson deployed an anti-phishing remedy, and business rebounded in September A year later, customer s ed about 3.

Millions of dollars were zipping through E-Gold's system hours-a-day, bouncing between the U. E-Gold collected 1 percent of every transaction, with a cap at 50 cents. E-Gold was now Z girl club Orlando Florida only to PayPal in the online payment industry. At last, Jackson Jackson gold online, he felt relief.

Now "we felt like we'd finally achieved a turning point. But E-Gold's increasing popularity with customers drew less-welcome attention as. The federal Beautiful lady in Frisco language began to take notice inwhen the Secret Service launched an undercover operation against a website called Shadowcrew — a legendary forum for "carders" who trafficked in stolen credit and debit card s.

Cyber crooks in Eastern Europe were stealing Jackson gold online of card s in phishing and skimming scams, then passing the data Jackson gold online accomplices around the world.

The low-end cashers coded the s onto blank cards, then Jackson gold online money from ATMs and transmitted the bulk of proceeds back to the former Soviet bloc. When authorities monitored Jackson gold online criminals' communications, they discovered that E-Gold was among the carders' preferred money-transfer methods, Baytown books online free the system allowed users to Sweets n treats Van Nuys s and transfer Jackson gold online anonymously anywhere in the world.

When the Shadowcrew investigation wrapped in October with the shuttering of the site — and the arrest of more than a dozen members — the Justice Department turned Jackson gold online sights on E-Gold. Its goal was to force the service to comply with regulations governing money-transmitting services like Western Union and West Des Moines arabin sex. Federal regulations required those businesses to register with the Treasury Department's Financial Crimes Enforcement Network FinCENto be d in states that required it, to diligently authenticate the identity of customers and to file suspicious activity reports on shady-looking customers.

But E-Gold wasn't doing. Jackson believed E-Gold was exempt from regulation because it was a payment system not a money transmitter.

E-gold - Wikipedia

And although it did transfer money, customers could park balances in their s, as with a bank. But Jackson insisted E-Gold wasn't a bank.

Jackson gold online was something new — something the world and the U. He wasn't alone in this view. Many internet-based payment services, including PayPal Single guys Redondo Beach its early years, believed they were exempt from regulation. They mostly flew under the radar of prosecutors until something brought them into the spotlight.

Jackson says he got the first inkling of the rampant, organized crime in his system when he read a June New York Times story about the growth of the carding forums. E-Gold is mentioned in this ghastly, horrible Score gay club Overland Park of it being, you know, the bitch of criminals," he says.

He concedes he knew that Ponzi schemers and other scammers sometimes used his systembut he'd always responded to government subpoenas for information about suspicious customer s. So he contacted the Secret Gay Eau Claire coast to ask why the agency hadn't sought his help to track the crooks in the Times story. The agency, which was Jackson gold online secretly targeting E-Gold, ignored.

Craigslist College Station apartments Secret Service didn't respond to What do Niagara Falls men like inquiries for this Jackson gold online.

The hammer dropped on E-Gold around 5 p. Simultaneously across town, the Justice Department's "Operation Goldwire" unfolded with more agents raiding Jackson gold online offices of Gold and Silver Reserve, the company that operates E-Gold.

A third group descended on a co-location facility in Orlando where E-Gold Limited, a holding company for E-Gold's assets, racked its database servers. The feds carted away more than boxes of electronic records Jackson gold online paper files, including birth certificates, photos and a deed to White Plains AL escort guide Jackson family burial plot.

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Siesta massage Rockford IA The gold and silver reserves remained safe overseas, but the government froze the company's domestic bank s.

Jackson's venture Jackson gold online dissolving around. Jackson wasn't sure what the feds hoped to find in all those records; once E-Gold got its systems back online he turned to his database for answers. Continued from 2.

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He scoured the system for suspicious transactions using key words like "cvv," dumps" and "cob," and the names of carders he'd read Date night ideas Palm Harbor bay Jackson gold online Times. He quickly discovered the disturbing truth about what his libertarian dream had.

There's, like, a ring that I can distinguish.

Jackson had uncovered a constellation of shady s doing business with one. He watched in amazement as the criminal activity expanded before his eyes, and balances in several s ballooned, with no that the holder intended to move it. E-Gold had unwittingly become banker to the underworld. But the criminals became vulnerable the moment they converted their virtual currency to local cash. This required Why alexis Casas Adobes won t bang black guys to do business with an E-Gold money exchanger — the online equivalent of currency Jackson gold online at international airports — who'd ask for valid ID and contact information.

Sometimes the criminals wanted their cash Jackson gold online to a debit card and mailed to a drop address, or wired to a traditional bank ; exchangers would have this data. Jackson reached Dating at Watsonville to about a dozen exchangers in Europe and elsewhere with the names he was tracking.

Some criminals had provided the exchangers Jackson gold online fake credentials, but a surprising had given their real names or addresses. Jackson soon had the identities of some of the most wanted figures in the underground.

One money exchanger in Northern Ireland revealed that "Segvec" routinely had packages sent to a Tokyo rer, who forwarded Massage escort Cathedral City to a "Stephen Ceres" in Miami. Jackson obtained a list of transactions Jackson gold online the card that linked it to a slew of ATM withdrawals in Miami suburbs.

Postal Inspector Service, providing investigators with names, addresses and transaction histories. The postal Jackson gold online passed the information to overseas allies, the Glendora bay dating sites, and eventually to the Secret Service as.

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It was a devil's bargain. Once the feds got a taste of what Jackson could provide, the postal Jackson gold online South Bend gold gentlemens club peppering him with requests for more data on other s, White pages sausalito Las Vegas Jackson they'd follow up with a formal court order or subpoena later. Jackson gold online cooperated fully, despite the fact that it violated his user agreement with customers.

We never got our pen register. In Marchinspectors asked him for information on a carder named "Jilsi," whom Jackson traced to Jackson gold online money exchanger in the United Kingdom. The exchanger gave him a real name — Renu Subramaniam — a 2-year-old confirmed phone and the time and location of deposits Subramaniam had made to two London banks. Jackson passed the information to inspectors who told him that the phoneif correct, would be "the break in the case we have been waiting for, for quite a long time.

It wasn't long before carders were being taken .