GoldNow claims EvoCash bust

What was suppose to be a quiet summer weekend at home with family quickly came to an end when e-Told received an email from Graham Kelly regarding the need to warn our members that EvoCash had a cash flow problem.

Due to the fact that Spam attacks are common in this arena, we had the need to make sure this was not an attack on EvoCash by an unknown party. Our first step when we receive an email of this variety is try to make sure it is coming from where it says it is. In this case Graham is not hiding anything and the header did in fact make it come from Graham.

How did we react? The e-Told Reports staff was shocked. Who would have believed that an exchanger would go this route? Under no circumstances would anyone expect an exchanger to blurt out with rage in his words the comment made. At that time, staff had no idea that Graham had included sending this notice to an unknown amount of locations and addresses. We contacted Graham by email regarding his claims.

Graham Kelly from GoldNow.st opted to send out a public warning to numerous locations claiming that EvoCash is in trouble and that people should withdraw their funds immediately.

Graham stated that he would no longer deal with EvoCash because he could not get any verified information from the EvoCash owner. But Graham had never had verified information from EvoCash during the 3+ years he was dealing with them. Graham was asked why suddenly the change?

Graham stated the following "Not any more. I am annoyed at myself that my normal DD standard has been relaxed over EvoCash. From this point on, I ONLY deal with ecurrency providers that I can visit, and call, and liaison with, in a NORMAL way. Likewise, when GoldNow Bank is launched, I'll be in contact with any exchangers that wish to use my services. Generally customers will be able to call me, and certainly exchangers will get easy access to me, either in person, or phone, or by the normal communication channels."

This is understandable and is the right of any exchangers. An exchanger is no different from any investor. We all have to make choices that comfort ourselves. If you want to cease dealings with someone you all have the right. But why suddenly the switch against them and the public accusations?

Graham went on to explain his thoughts. "The lack of ID was a serious issue, and has been all along. It came to a head with upset EvoCash members complaining about the blocking and freezing of EvoCash accounts, which WAS the real problem. Secondly, they won't even give ID to me, but expect SERIOUS ID from EvoCash customers. Very strange way of doing legit business."

This might be strange to some but not ALL EvoCash accountholders are subject to this claim, only those that are singled out by their security team, much like the way things are done at other gold providers. In the case of FLO, those continuing to use the tunneling software were obviously red flagged.

It seems that Graham enjoys being in the limelight when it comes to getting his name published. Due to the timing of the EvoCash and Freelandopps situation, it seems Graham's comments were released publicly due to Freelandopps out-exchanges being stopped. According to other information received, Graham admittedly stated to Freelandopps that GoldNow had moved millions of dollars through EvoCash. When Graham was asked if he had any other connection to FLO besides exchanging?

He responded with some amusement. "I don't have any connection with FLO at all. Likewise, I don't deal with companies, or special interest groups, or the Teamsters Union, or the Volkswagen Beetle Touring Club, Texas Chapter. I deal with verified INDIVIDUALS. Occasionally, I do deal with INDIVIDUALS' spouses. Likewise, when I deal with e-gold, I deal with Doug Jackson, or Jim Ray, or Mike Commer from INTGold, or Steve Renner, from Cash Cards International, or Sir Robert, from CyfroCash... I address every email I send to you, as AL, I'm sure you get the point.

We surely do get the point, but then why is GoldNow allowing themselves to accept Freelandopps out-exchanges with the use of an alias instead of proven verified information. This has been stated by Freelandopps that Graham will allow an alias first name in certain circumstances. More than likely exchanges between ecurrency only as bank wire information must be verified in all cases.

Graham has stated to us that absolutely no exchanges will be done using aliases. If this were the case, then why would Freelandopps Admin state that exchangers would accept alias first names?

There is no point in being blunt, so Graham was asked if he was an invested member of Freelandopps Graham said "No. I don't generally invest in "these" types of programs, as most of my invested funds are in GoldNow projects. That way, I also get to retain the funds in my own projects it is called profit utilization.

Prior to the EvoCash situation, little was known regarding previous problems Freelandopps had with e-Gold, and e-Bullion. It is since the concerns at VirtualGold and now EvoCash that this story has come to light. Graham was asked if before your comments were made public, did you consider the previous problems that FLO had through e-Gold, e-Bullion, and VirtualGold?

Graham's response was somewhat surprising. It was figured that a prominent market maker would have kept up to date on what was happening in the arena. His response is below.

Unfortunately, I didn't get to hear about any previous FLO problems, as ALL the ecurrency concerned didn't share info with most of the market makers. At least, not in a format that contacted the problems to individuals that "invested" with FLO. This was one of my concerns over the past few days, with the other market makers, and some of the providers, specifically e-bullion (NO FEEDBACK at all), and VirtualGold (virtually no feedback, either). There were "rumors", but this whole industry is rife with rumors all day long... I simply don't have time to regard most of them as serious. However, when I regularly discover industry problems (I've had SOME experience in this field (OSGold), I share them with the other market makers. That's why I went public with the EvoCash cash crunch.

This might being another possibility to the arena. Maybe in some way there should be some communication between providers and exchangers regarding possible problems the arena might have. Then again this would be against the terms and conditions of all providers.

At this time GoldNow is still registering ecurrency accounts through their verifying process. This is a great service for GoldNow. It should cut down on internal fraud at GoldNow, but just because a program or business does not verify him or herself, does not mean that the program or person is considered to be not trusted.

Graham's decision is accepted as a GoldNow business move. It was considered to be a hit below the belt. Although no apology will probably be made, it is believed that if this happened all over again the comments would have been different.

By the way, GoldNow or any other parties in this arena have never verified e-Told.org. When it comes to the Internet, track record has more value to many than the need to be verified.

An Independent Source gives his thoughts

Another exchange that was singled out as "available" to FLO members to out-exchange is Goldage.net . Ragnar is the owner and was happy to assist in adding his take into the story.

Goldage is an independent exchange provider that deals with individual customers, they as well have no affiliation with FLO, except for the fact they are handling out-exchanges for some members of Freelandopps. Their sole purpose is to exchange currencies for their clients. Accordingly they do not police the customers beyond standard verification procedures that are outlined in the terms of service.

When asked if the EvoCash situation was going to affect business, Ragnar's take on the question was. "Evocash has issues with one business, FLO. We were not made privy to these issues, as they seem to be internal Evocash security issues. To my knowledge, all other transactions in Evocash that have nothing to do with FLO are going smoothly."

That is correct all other transactions are being processed, it is only those using the tunneling software that were being investigated and or frozen. The information sent out through email and to forums from Graham Kelly came up in the correspondence from Goldage. We asked him if agreed with the public comments made by Graham Kelly regarding EvoCash?

His response was, "Although I know of such comments only by reference, I suspect that Graham, like everyone else, is speculating, based on available information, which is scant. I have not seen any evidence to show that Evocash has any problems beyond their dispute with FLO."

Ragnar was asked to generalize his concept of the whole procedure. "We cannot control, nor can we know, what our customers are doing with the various e-currencies that they purchase. Only issuers of the e-currencies may have such information. Gold Age only exchanges e-currencies for individual customers. That is all that we do.

We have heard that E-bullion had similar problems with FLO, the main issue being that FLO refused to be identified, among other reasons that we are not at liberty to disclose. For this reason, E-bullion asked FLO to leave. We believe that both E-bullion and Evocash are first rate issuers of digital currencies, with superb customer service, and they should be judged based on their history of excellent service and reputation, and not on transient problems with a purported "HYIP program," namely, FLO. Having said that, I'd like to add that I have no ill will towards FLO or any other business, and I hope that FLO customers will find success with their investments.

Evocash has been around for many years without any problems, and because the accusations stem from insufficient information, and made during heated exchanges of words. No one can definitively know anything about Evocash finances except Evocash. Based on my experience with Evocash, I believe that Evocash is a sound electronic currency, worthy of its reputable place in the digital currency economy.

We would like to take this time to thank Goldage Admin Ragnar for is assistance in this report. The purpose was to get a fully independent source to act as character witness to this dispute.

X-Changers Halts Freelandopps out exchanges

One of the main exchangers that have been caught in the middle of this dispute is X-changers.com . They have a close affiliation with EvoCash much like OmniPay to e-gold a few years ago, or VirtualGold and PaybyGold presently.

One of the principles at X-Changers was asked to answer some questions regarding this dispute. The questions being asked relate to X-changers decision to stop out-exchange for Freelandopps accounts.

The e-Told Reports wanted to know how the running of the tunneling software used by Freelandopps caused concerns for X-Changers. Through the response it is clear the question was not really one that should have been answered by X-changers. Here is Mark's response.

X-Changers had no problem with the tunneling software as it did not effect us whatsoever. Evocash did have a problem with Floe's use of this software and made it known to them over 2 months ago about the problem. Floe's general response to Evocash was that their members and themselves should be able to continue to use the tunneling software and it is not EvoCash's place to tell them or their members to stop using the software when accessing Evocash. With respect to the exact reasons Evocash had with FLO's use of the tunneling software, I will leave that for Evocash themselves to address with you.

Mark was asked what caused X-Changers to make the announcement of Friday Aug 27? His response was aimed at the fact complaints were being received regarding EvoCash from Freelandopps members. Here is his response.

This message was sent out because we were receiving emails from FLO customers blaming X-Changers for the problems that FLO was having with Evocash. Customers fail to realize that any problems they have with their investments or profits are with FLO and not X-Changers or even Evocash for that matter. X-Changers merely provided an exchange service. We assisted FLO and their members in exchanging their FLO credits to ecurrency, bank wires, checks, etc.... We provided this service until such time as we believed there was some unethical events taking place with FLO admin that we wanted no part off. No one involved with FLO ever had a problem with X-Changers until FLO started blaming us for their problems.

Mark, can you supply any verifiable information that would prove without doubt wrongdoing by FLO? Now supply verifiable information would only come through a court order in most cases, but is the information available? Mark's response was.

The biggest FACT that proves FLO has done wrong and misled their members is when they imposed a $1000 a week withdrawal limit on their members on or around August 10th. However during this mandatory $1000 limit, FLO admin was sending X-Changers out-exchange requests, on a DAILY basis, for hundreds of thousands of dollars going to 5 different companies all owned by the same person and to Russian anonymous ATM cards.

We asked Mark if FLO investor's funds being tied up or are investors not affected by this, other than not having a place to out-exchange? It was referring to the funds locked at EvoCash. Due to the wording being misleading Mark took the question as being related to FLO investments that members bought into. Mark's response was.

We cannot answer this question as FLO has never communicated as to what they invest in, if they really do invest in any real world investments. It is virtually an agreed upon fact on almost every message board on the Internet that FLO is a Ponzi scheme. If FLO investor's funds are being tied up it is the result of FLO not investing in any real world investments to earn real, legitimate profits. Remember FLO did not use Evocash only. They used e-Gold, e-Bullion, VirtualGold and any number of bank accounts. It is a complete lie if FLO is blaming their lack of ability to pay their members on EvoCash decision to suspend their accounts.