June 12, 2007 - The Bullion Exchange continues to engage in efforts to secure the release of the funds seized from its’ bank account, as well as the gold being held in The Bullion Exchange’s accounts at E-Gold. The seizure order, under which the United States Government took control of the contents of The Bullion Exchange’s bank account is the subject of a civil action filed in the United States District Court in Delaware. The funds are being securely held by the judicial system pending a resolution of the civil litigation. The allegations contained in the complaint, contend, inter alia, that The Bullion Exchange failed to register, or secure a license to act as a money transmitter (in violation of 31 C.F.R. Section 103.11(uu)(5)(1)); additionally, the complaint contends that The Bullion Exchange failed to obtain a business license in the State of Delaware, violating 5 Del. Code Section 2303. The Bullion Exchange vehemently denies the allegations and has challenged all of the accusations contained in the civil complaint.

Prior to the unannounced actions of the government, and without warning, notice or the least inclination of the governments intended course of conduct, The Bullion Exchange had, prior to the government’s actions, been independently engaged in telephonic and written communications with The Financial Crimes Enforcement Network (FinCEN), the governmental agency responsible for making a determination of whether or not a specific business entity falls within the definition of a money transmitter. The Bullion Exchange was verbally informed by FinCEN representatives that The Bullion Exchange did NOT, and does NOT fall within the definition of a money transmitter used by the United States Government in the civil litigation. The Bullion Exchange, upon the assurance of FinCEN representatives that it was not required to obtain a money transmitters license, thereafter took the additional step of requesting an administrative ruling, in writing, from FinCEN, reaffirming their earlier verbal ruling. The Bullion Exchange is currently continuing to work with FinCEN representatives to obtain this written confirmation.

The Bullion Exchange is moving forward as rapidly as possible to obtain a hearing date to present its evidence before the United States District Court in Delaware, in order to have the seizure warrant recalled and obtain the release of all funds seized by the Government from its’ and its’ customers accounts. The Bullion Exchange anticipates it will prevail upon the arguments presented to the court. There has been no court order prohibiting The Bullion Exchange from conducting business, and its operating accounts have not been frozen. Nevertheless, due to the nature of the allegations contained in the civil complaint, and upon advice of legal counsel, The Bullion Exchange is attempting to secure the written confirmation which it verbally received from FinCEN, prior to reinstituting business operations. In the meantime, however, The Bullion Exchange is working as diligently as possible to maintain its worldwide presence in this industry, honoring its commitments, as funds allow, to customers whose transactions were unable to be processed due to the unilateral actions of the Government, and engaging in other efforts which will allow it to complete each transaction it has engaged in with our customers, in as a professional and expeditious manner as possible.

The members of The Bullion Exchange are extremely optimistic about a positive outcome to the current situation. It is our opinion that gold and precious metals are safe and secure investments, and will continue to grow in value in the future. We sincerely appreciate the patience of our valued customers who have stood behind us during this ordeal, and assure you that your loyalty will not be forgotten. We will continue to periodically update this website, so please continue to check back on our progress.