U.S. prosecutors have seized control of the digital
currency exchange, a Costa Rica-based company for allegedly helping
criminals around the world launder over $6 billion.
The illicit funds were linked to everything from child pornography
and drug trafficking to software for hacking into banks according to
U.S. prosecutors.
The US prosecutors said this is the largest international money
laundering case ever brought by the United States against Liberty
Reserve and seven of its principles and employees, who for years have
operated one of the world’s most widely used digital currencies. But as
alleged, the only liberty that Liberty Reserve gave many of its users
was the freedom to commit crimes, as it became a popular hub for
fraudsters, hackers and traffickers.
Liberty Reserve founder Arthur Budovsky was arrested in Spain on
charges of money-laundering, as he was travelling back to Costa Rica,
while others arrests were made in various countries.
Prosecutors said Liberty Reserve had over a million users worldwide
and virtually all its business was related to suspected criminal
activity.
Unlike Liberty Reserve, some other digital currencies require users’ identities.
Prosecutors said they had taken a step towards reigning in the “wild
west of internet banking”, and analysts wonder if this could signal the
start of a crack-down on other online payment systems.
GATHERED FROM: http://www.channelstv.com/home/2013/05/29/us-bursts-liberty-reserve-for-laundering-6-billion/
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