Liberty Dollar was busted for counterfeiting, because their coins looked too much like legal tender. e-gold was busted for violating Know Your Customer money l

Liberty Dollar was busted for counterfeiting, because their coins looked too much like legal tender. e-gold was busted for violating Know Your Customer money laundering regulations. Alternative currencies can be legal-- see, for example, Disney Bucks (paper currency issued by Disney) or Ithaca Hours (oldest local currency in the US, going since 1991).