This says to me that 5% of that was backed by...nothing. This company is sitting on about $9.5 million dollars worth of precious metals, and they’re claiming its worth $20 million in legal currency. I’m not sure what the laws are, but if this were legal, it would be incredibly chaotic once everyone started jumping in to make their own currencies.
Basically, if these are indeed the underlying facts, what this guy is doing is operating an illegal bank that is violating not only every standard of ethical banking practice, but also every federal banking law.
I'd wait and see on this one. If you note the press release, a case can be made they're offering an alternate currency. You point out the possibility of banking violations. And while I'm not suggesting it's the case here, there have been a couple cases where similar firms were engaged in money laundering.
“what this guy is doing is operating an illegal bank that is violating not only every standard of ethical banking practice, but also every federal banking law.”
Once again....banks do it all the time with your savings..... it’s called Fractional-reserve Banking. They basically pull money out of their collective azz. It’s magic.
But that is not what he is doing..