China used prisoners as gold farmers
guardian.co.uk
guardian.co.uk
Virtual Gold has become cheaper and cheaper over time (you can't fail to notice this, if you're standing around in a city you see all communication channels spammed with offers, which mention current pricing). If we assume the Law of Supply and Demand works for the virtual gold economy too, we could conclude that supply is rising, and vice-versa that Blizzard is not doing enough to stop the suppliers and gold farmers.
Then again, people buying gold in online games probably don't care very much.
Given the information Blizzard has about gold creation and spending there isn't any reason they couldn't algorithmically 'fix' this problem both from the buyers and the sellers perspective.