e-gold broke laws that were not in place when they started. PayPal was accused of pretty much the same things and managed to negotiate their way to compliance. e-gold had pretty much attempted to do that since they first attracted attention.
They like many other startups also went under the misconception that if you structure things outside the US, you're safe (you're not). US businesses like google are facing similar situations in the EU regarding data privacy rules.
How exactly does the US enforce its laws in countries (or on businesses) that exist outside the US? It sounded like e-gold didn't just have some paper corporation, but an entire, multi-national structure of protection.
They like many other startups also went under the misconception that if you structure things outside the US, you're safe (you're not). US businesses like google are facing similar situations in the EU regarding data privacy rules.