was a digital gold currency
(DGC), originally founded in 2001
. Similar to other DGCs, 1mdc allowed for the instant electronic transfer of gold
between user accounts. Unlike other DGC providers 1mdc was backed by the reserves of e-gold
, rather than their own physical bullion reserves.
The website appeared to switch between various offshore hosting locations, and used software designed by Interesting Software Ltd, an Anguilla
As of April 27, 2007, a US court order has forced e-gold to liquidate a large number of e-gold accounts totalling some 10 to 20 million US dollars worth of gold. A small part of this seizure was 1mdc's accounts and assets . If the court order in the USA is reversed, a user's e-gold grams remaining in 1mdc will "unbail" normally to the user's e-gold account. Ultimately e-gold is owned and operated by US citizens, so, 1mdc users must respect the decisions of US courts and the US authorities regarding the disposition of e-gold and the safety and security of US citizens. Even though 1mdc has no connection whatsoever to the USA, and most 1mdc users are non-USA, ultimately e-gold is operated from the USA.
As with any digital gold currency, one used 1mdc to keep assets away from fiat currencies
and avoid inflationary risks associated with them. To open an account, 1mdc required the user to have a functioning e-mail address
, an e-gold account, a password, initials and a PIN
1mdc charged 0.05 gold grams
per spend for accounts... Read More