offshore investment, offshore hosting, offshore banking, precious metals

Since the start of these problems much information has come out, but the truth is this problem started many month ago. One has to understand that four different gold providers have had to deal with telling Freelandopps to move their business elsewhere. The use of the tunneling software is only a small part of this mystery. Here is how Mark from X-changers summarizes the situation from email received, you may have read this in a few forums over the last week.

1. Evocash does NOT have a cash flow problem whatsoever. It has never had a cash flow problem. The source of this rumor is the result of a Ponzi HYIP known as Freelandopps (FLO) promising 120% return a month among other things.

2. FLO has been around for about 7 months. FLO first used e-Gold until e-Gold kicked them out. They then used e-Bullion and were kicked out. Next they went to VirtualGold and were kicked out for trying to launder money and abuse the system. They finally ended up at Evocash.

3. They used and recommended to all their members to use a proxy anonymous tunneler when accessing anything on the Internet. This software gave every member the same IP address. So as the membership grew and more and more of these FLO members opened and used their EvoCash accounts, it quickly became a security issue for EvoCash. Over 1300 accounts a day was all using the same IP address. As you are well aware this is a security nightmare when trying to monitor internal accounts for any fraud or hacking attempts.

4. Evocash asked FLO for several months to stop using this tunneler when accessing the EvoCash site. FLO refused and told their customers to continue to use it. Evocash warned them again that they need to comply with this request for security reasons. FLO was reluctant to pass this request on to their membership and rarely bothered to even reply to EvoCash's requests.

5. During this whole saga, X-Changers was performing FLO's out-exchange requests on a daily basis for their members. They would pay us in e-Gold or EvoCash and then send us the batch file. The files would contain the list of bank wires, checks, eCurrency transfers, etc,,, that we needed to perform.

6. We performed these requests for two months with no problems at all. FLO was moving an average of about 70k-100k a day through us. Unfortunately, FLO still failed to comply with the requests made by EvoCash's security department however we did not pay much attention to this as we were busy handling the FLO member redeem requests.

7. Everything was fine between FLO and X-Changers until the first week of August. Then things changed. FLO announced to their membership that they had a severe key logger Trojan within their database and this security breach forced them to eliminate all FLO out-exchange options except for bank wires. They also told members that due to this security problem, they could only redeem $1000 a WEEK out of the FLO program.

8. When we began to receive the new "limited" out-exchange requests from FLO we were shocked. We expected to see wires for around $1000 or less. What we found was much different. 99% of the wire redeems were for a $1000 or less because of the imposed limit by FLO. However, to our surprise every batch file contained wire requests of 40k, 50k, 60k, 80k all going to about 4 different accounts INCLUDING an anonymous ATM card out of Russia. This continued to happen day after day. We researched the 4-5 companies the wires were being sent to and discovered they are all owned by the same person. It was clear to us that FLO was limiting what their member's withdrawal, while at the same time they taking out 200-300k behind the members back. These actions do not fit with a legitimate company. It was clear to us they were trying to launder funds through our service at their members expense.

9. Despite our opinion of the above facts, we did not voice them to FLO. We simply informed them that we could no longer perform their redeem requests. This was on or around the 20th of August.

10. Meanwhile, EvoCash's security department was still trying to get FLO to operate their account in a manner that was acceptable to Evocash and to get their members to do the same. However FLO's attitude was one of arrogance and that they could do whatever they liked. Finally after several complaints about the FLO program from other account holders, EvoCash's security department had had enough and suspended their accounts. Evocash requested identification documents from FLO. FLO refused to comply with this request.

11. FLO's response to this was to announce to their membership that X-Changers and Evocash had no fund available and that is why Evocash suspended the accounts. Here is where Graham Kelly with GoldNow comes in.

12. Since X-Changers stopped performing redeem requests for FLO on or around the 20th of August, FLO had to try and find another exchange maker to handle their member requests. FLO told Graham the story that Evocash and X-Changers froze their accounts because we did not have enough money to cover their redeem requests.

13. Graham should have contacted Evocash or X-Changers to discuss this matter to find out what the truth is. Instead he jumps into bed with FLO and says "I have done millions of dollars through EvoCash successfully over the last several years, but if they have suspended your accounts it must be because they have no money and are cash poor.

14. So FLO and Graham without ever getting the facts, send emails and posts out telling customers to pull money out of EvoCash as fast as possible because EvoCash was unstable. Of course anything like this, creates panic among the masses because most people believe anything they see or hear on the Internet without substantiating the allegations behind the posts.

15. All these rumors happened late Thursday night and into Friday morning. I sent some very stern and truthful emails to Graham Kelly on his actions. I pointed out that FLO had been kicked out of 4 major ecurrency companies in the last 7 months. SO it was just nor Evocash that had a problem with them. I also informed him about the Russian ATM card redeem requests. His reply to me was as follows:

"Actually, I have been seeking this info out... but why the HELL didn't you mention it earlier, WHERE THE HELL WAS THE WARNINGS FROM EVO-BLOODY- CASH re: FLO"

He is blaming X-Changers and Evocash for not telling him what was really going on with FLO. The reality is that he jumped into bed with FLO without verifying any information and took the opportunity to bash X-Changers and Evocash while he freely admits that he has done millions of dollars in successful transactions with Evocash over the last several years.

His actions and false rumors caused EvoCash to close his account return his funds and remove him as an official Evocash exchange maker. But as you know once the rumors start it is difficult to get them under control.

It is understandable that the pressure forced upon all parties has caused some anxiety. This arena has its ups and downs and more often than not, they are downs. Investors for and against Freelandopps have picked their side. They have drawn their lines in the sand and have taken their stand until the bitter end.

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