The article certainly illustrates why Satoshi chooses to remain anonymous.
This quote from the article was interesting:
When authorities monitored the criminals communications, they discovered that E-Gold was among the carders preferred money-transfer methods, because the system allowed users to open accounts and transfer funds anonymously anywhere in the world.
This is why bitcoin will eventually be a target...assuming the user-volume rises above its current noise floor.
and how would they hurt us? just asking... freeze all bitcoins?
There are a myriad of ways an entity with the resources of a nation-state can hurt bitcoin, even destroy it for all practical purposes. Will they? I think they will if it gets on their radar as anything other than a momentary blip. To what extent will they go after it? To whatever extent is necessary to remove the threat they think it poses to them.
From the article:
When the Shadowcrew investigation wrapped in October 2004 with the shuttering of the site and the arrest of more than a dozen members the Justice Department turned its sights on E-Gold. Its goal was to force the service to comply with regulations governing money-transmitting services like Western Union and Travelex. Federal regulations required those businesses to register with the Treasury Departments Financial Crimes Enforcement Network (FinCEN), to be licensed in states that required it, to diligently authenticate the identity of customers and to file suspicious activity reports on shady-looking customers. But E-Gold wasnt doing this.
This represents the nut of it.