EBULLION ACCOUNT HOLDERS DEPOSITS WILL BE RETURNED

A number of former users of the now shuttered digital currency service e-Bullion reported that the federal government wants the court to appoint a receiver to manage the return of assets to e-Bullion account holders. The same information is available in the recently filed court documents.

Numerous customers of the ill-fated payment service appealed to the FBI reporting that they were unable to access their money since the time of e-Bullion's going offline. Last week an FBI agent filed a declaration with the U.S. District Court for Central California that stated the agent received over 80 claims from e-Bullion account holders. The information about the government's plans came from the two of the former e-Bullion users who reported that they were asked by the agent to provide the proof of ownership.

One of them said that the agent instructed him to mail in proof of ownership, including account records and wire transfer documents. Besides this account holder was also requested to attach a letter where he should point out what type of account he had with e-Bullion: a simple investment or a high-yield investment program. Another user reported that in addition to asking the proof of ownership the email from the special FBI agent informed about the government's aiming to return deposit to account holders.

The agent's declaration filed with the U.S. District Court for Central California stated that most of the 80 users' funds were used to “facilitate one or more fraudulent schemes”. A separate motion from the U.S. Attorney's Office alleged that the investments were ‘Ponzi schemes'. In the same document the authorities insisted that “a receiver or similarly objective third party ought to be appointed” to handle the accounting and disbursement of seized assets. A hearing was scheduled for March 9 to review the motion filed by attorneys for the companies to have the seized assets returned to cover legal fees and cover operational costs.