Some days ago they told everybody that they were working to become a more mainstream trading fund, moving to the professional arena:

Hi There Everyone,

I am so sorry for not getting back to you guys sooner than this!!

We have open positions running and I was giving them the first week in
August to close so I could account for them….after it became apparent that
they would run for longer I was going to update you all last week.

However as some of you may have noticed our Hosting company went down,
taking the site and email along with it!!!

After yelling at them it was clear that we seemed to be hitting a brick wall
there so Ken and I decided to get a New Domain: Northsea Forex Group Ltd | NSFG
and have just got that up and running.

The dot com domain will be transferred over shortly, but at the moment both
Ken and I are using the dot eu domain for emails.

Okay, right well because the Open positions are currently still running I
have to report the July position as Flat, which mean no gain or loss on
account but we are confident that this will ultimately prove very positive
when they close. However we can not say with any certainty when this is
going to be closed as it totally depends on market conditions.

With this in mind Ken and I have decided to take a step that we have been
planning on taking for a while now, and just needed the right time, due to
the current situation now is a good a time as any.

Northsea Forex Group Ltd wants to become a more mainstream trading fund and to do that we need to step out of the grey area and move into the
professional arena and due to the current political climate need to protect
both us and yourselves from any potential problems that may occur. The
problem that we have is the Pool Account plain and simple. Under current
regulations we are required to “know our clients”, this means that a full
compliance check is done on each of them……if you know any Managed
Account Holders then you will know this can be a lengthy process. Currently
we don’t actually know any of you, at least not to a satisfactory level
required by law. We can not undertake the same process that a Managed
Account client goes through for each of you….it would take an age.

Obviously this is not an option for the pool members, and we have no
intention of closing the pool down or anything. What we are doing however is
a restructuring behind the scenes which will most likely result in the Pool
being licensed to a third party who will then become a client in their own
right as well as complying with all sorts of regulations and tax issues. You
guys will probably not even notice anything has changed to be honest.

The downside of this is that it might take a while for us to get everything
sorted. After taking advice from various sources we have started this
process, as not only will it make it better for everyone in the long run, it
will also mean that we will avoid any such problems that occurred at the
start of last year which would be bad obviously!!

While we are going to be undertaking this we are going to have to cease all
financial activity for Northsea Forex Group that involves the Pool Account,
this includes trading, while this happens. This does not include the current
open positions which were made prior to this undertaking. I warn you now
that this will probably take a few months to get sorted. It is something
that really does have to be done, and as we are locked with the open
positions anyway now is the best time to do it.

We do apologize in advance for the inconvenience this may cause.

In regards to the July Statements, they will probably not come out till the
end of August, as the email programme is coded into the system using the dot
com domain and we will either have to wait for it to resolve over to the new
hosts or if that looks like it will take to long then we will get it recoded
to the new domain.

Again, I apologize for the delay in getting an update out to you guys.
Please also note that if you have sent me an email in the last week or so I
will not, and probably will never get it, if you sent it to the dot com
address.

Have a great week and I hope you enjoy what is left of the Summer!
Paul

Now they say to close the fund due to a margin call on all their accounts:

Important Update

Yesterday evening our broker in London, BGC, made a margin call on all our accounts after a drop in equity made it impossible for us to maintain the large open negative positions we have been holding for a while. It forced us to liquidate all open market positions, including both arbitrary trades and the hedged position for an all out loss. The large negative P&L had been built up as the global equity markets plummeted following the serious credit concerns and it caused a major unwound of the carry trades, not only in the Yen pairs but also in the Swiss Franc crosses. Attempts to trade around these arbitrary positions failed and we are forced to close down the company following this margin call since we have no liquidity left. Hundreds if not thousands of hedge funds and investment firms around the world have severely suffered from this global incident and we regret not to have
been able to pull ourselves through the credit crisis unharmed.

This liquidation has serious consequences for everyone involved. Personally, I have lost my own private trading account and are now forced to sell my house and liquidate my personal assets to be able to cover expenses until I can move and I will most likely end up with a serious amount of debt to banks and credit institutes. Along the way NSFG has been confronted with obstacle after obstacle and although we have tried our very best to stair clear of these obstacles, this last financial crisis killed our dream. There is no way we can regain what has been lost and the sensible thing to do is pull the plug now and get things closed down for good.

Ken, on behalf of NSFG Ltd.

I hope that they can show proofs of this “margin call” to all their investors. Nowadays many investment programs (and ponzi schemes) are telling lies to close as soon as possible.

Source: http://www.gdcaonline.org/content/news.html

This is a direct warning from GDCA (Gold Digital Currency Association):

Due to numerous unanswered complaints, the Global Digital Currencies Association would like consumers and merchants to be aware that E-bullion.com closes and/or freezes accounts without any court order or reasonable justification, sometimes freezing customer funds forever.
This unscrupulous policy makes E-bullion an unfavorable system for online commerce and for the safe and secure storage and transfer of funds.
We recommend that E-bullion account holders switch to a different digital currency immediately in order to avoid frozen accounts and loss of funds, such as:

GoldMoney – www.goldmoney.com

Pecunix – www.pecunix.com

Liberty Reserve – www.libertyreserve.com

c-gold – www.c-gold.com

PhoenixDollar – www.phoenixdollar.com

E-gold accounts from this program were seized on April 2007 before going private:

Total amount seized – over $1.7 MILLION dollars

I recommend you to read these two links about what’s happening with Legisi:

Alan’s Blog and Scam.com

The transaction history shows that, while there were some payments out to investors (generally in the tens to hundreds of dollars), the vast majority of funds were simply taken out of the account for use by McKnight.Approximately 5440.90856 grams ($3,443,852.80) was exchanged out for national currency through Omnipay orThe Bullion Exchange. Another e-gold account, number 2828872 in the name of “LIDO Consulting LLC” and also controlled by McKnight, received 892.133009 grams ($550,000) from account 2636005.

Identified e-gold accounts operating pyramid schemes

e-gold accounts 2636005, 2825136 and 2828872

(Legisi Holdings LLC)

46. e-gold accounts 2636005, 2825136 and 2828872 are accounts purportedly owned by Greg McNight of Swartz Creek, Michigan in the name of Legisi Holdings, LLC. These accounts are used to operate the Legisi pyramid investment scheme, which has been operating since December 2005 via the internet website www.legisi.com. This program describes itself as “a private, members-only High Yield Return-on-Loan program. . . . Our members loan us funds, choose their repayment and enjoy the interest payments.” This scheme offers investors two programs in which to invest their money, including the “Standard Loan” which has a minimum investment of $250 and no maximum. At the end of the four month term, investors are told they can withdraw their principle investment with 10% a month interest paid, or chose to leave their money in the system and continue to earn 10% a month. The second program offered is the “VIP Loan,” in which the minimum investment is $10,000. The term of the investment is for one year, and at the end of the year, the investor can withdraw their money or leave it in the program and receive a 12.5% monthly return. Legisi also encourages investors to recruit others to invest in the programs by paying a 5% referral commission on all funds that are put into a new account The operator of the scheme – Greg McKnight, according to the website – states on his website that investors who may be seeking to refer other investors should never o use the “investment,” “Tax,” or “Guarantee.”

47. As of March 13, 2007, Legisi e-gold account 2636005 was the highest value egold account after the e-gold operation’s own accounts (e-gold, Ltd. and OmniPay accounts), containing approximately 1485.12508 grams ($978,845.94) worth of e-gold. An analysis of account 2636005 was conducted and yielded the following results: The account was created in December 2005 and transactions can be seen up until March 12, 2007. Approximately 11,254.25814 grams ($7,022,258.77) in funds in 1,556 transactions occurred into the account with notations in the memo field such as: “Deposit to www.legisireserve.com User ChuckieM”and “Withdraw to Robert Williams from Legisi.com.” The transaction history shows that, while there were some payments out to investors (generally in the tens to hundreds of dollars), the vast majority of funds were simply taken out of the account for use by McKnight.

Approximately 5440.90856 grams ($3,443,852.80) was exchanged out for national currency through Omnipay orThe Bullion Exchange. Another e-gold account, number 2828872 in the name of “LIDO Consulting LLC” and also controlled by McKnight, received 892.133009 grams ($550,000) from account 2636005.

48. A second Legisi e-gold account, number 2825136 had a balance of 375.641569 grams ($247,585.36) on March 13, 2007. Analysis of this account, also held in the name of Legisi Holdings LLC, was conducted and yielded the following results: Transactions in the account occur between September 2006 and March 2007. Approximately, 1,315 transactions occur involving the transfer of funds into the account with a value of 7498.626704 grams ($4,699,786.63), and include notations in the memo field such as: “Deposit to VIP fund.” Most of the funds received into this account, amounting to approximately 5365.237044 grams ($3,385,048.00), were transferred to Legisi’s account 2636005.

49. A third Legisi e-gold account, number 2828872 received approximately 3724.00066 grams ($2,499,806.00) worth of e-gold from accounts 2636005 and 2825136, both of which were used to receive investor deposits. Analysis of account 2828872 showed: 116 transactions occur into the account with a total weight of 4866.42213 ($3,237,669.14), four of which come from account number 2636005 totaling 3348.77982 grams ($2,240,805.00). Three of the116 transactions come into the account from e-gold account 2825136 with a weight of 375.22084 grams ($259,001.00). There were approximately 149 transactions out of the account with a total weight of 2208.24154 ($1,374,323.44). The smaller transactions out of the account appear to be payouts to keep investors satisfied, while the larger withdraws are to OmniPay for exchange. Shortly before its value was seized, e-gold account 2828872 was one of the greatest valued e-gold accounts, containing approximately 2657.54163 grams ($1,804,205.01) worth of egold.

From the forfeiture case filing of 7/24/2007

Case 1:07-cv-01346-RMC Document 1 Filed 07/24/2007

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA UNITED STATES OF AMERICA,
c/o United States Attorney’s Office
Judiciary Center Building
555 4th Street, N.W.
Washington, DC 20530

ALL PROPERTY IN/UNDERLYING E-GOLD ACCOUNT NUMBERS: 2636005, 2825136 AND 2828872,

VERIFIED COMPLAINT FOR FORFEITURE IN REM
The United States of America, by and through the United States Attorney for the District of Columbia, respectfully states as follows:

1.This is a civil action, in rem, brought to enforce the provisions of 18 U.S.C. §981(a)(1)(A), which provides for the forfeiture of any property involved in a transaction or attempted transaction in violation of 18 U.S.C. §§ 1956 and 1960, or any property traceable to such property. This civil action, in rem, also seeks to enforce the provisions of 18 U.S.C. §981(a)(1)(C), which provides for the forfeiture of any property which constitutes or is derived from proceeds traceable to a violation of any offense constituting “specified unlawful activity” or a conspiracy to commit such offense.

DEFENDANT PROPERTY

4. The defendant property is: All property, accounted for as an amount of “e-gold” in, or underlying, e-gold account(s) 2636005, 2825136 and 2828872, on or about April 26, 2007 and May 4, 2007, and now reflected as U.S. dollars.

The E-GOLD operation records the individual or entity opening or directing the e-gold account(s) related to this forfeiture matter as: Legisi Holdings LLC.

5. On or about April 25, 2007 and/or May 4, 2007, seizure warrants were issued by this Court authorizing seizure by federal law enforcement authorities of the property accounted as e-gold and contained in or held on deposit in the e-gold account(s) numbered and identified as indicated above. These warrants required entities operating the E-GOLD system – Gold & Silver Reserve, Inc./OmniPay/e-gold, Ltd. – to convert or exchange the relevant e-gold into funds denominated as United States currency.

Law enforcement officers served the warrants at the offices of Gold and Silver Reserve, Inc., on or about April 26, 2007 and on or about May 4,2007, and left copies of the warrants with Douglas Jackson, or other company officials, on each occasion.

The defendant property herein was seized pursuant to one or more of these warrants.

6. Post-conversion, the U.S. dollar value of the property recovered pursuant to the warrant(s) concerning the e-gold account(s) at issue here was $1,769,264.19.7.

The defendant property is now in the custody of, and under the control of, the United States Department of the Treasury, in Washington, DC.

Now e-gold has a Blog!!

Will we find there the answers about e-gold situation and more information about all this process?

You can read this new Blog in this link: http://blog.e-gold.com/