(WWW.TICOTIMES.NET)
By: Derrick Broze
Arthur Budosky, founder of digital currency system Liberty Reserve, was arrested in Spain last week. The United States government indicted Budosky and six other co-defendants in a $6 billion dollar money laundering scheme. In what is being called the largest international money-laundering case ever prosecuted, over 1 million users worldwide processed more than 12 million transactions annually. Authorities claim Liberty Reserve was the preferred service for hackers and other cybercriminals who choose to operate anonymously. The indictment states, “Through the defendants’ efforts, Liberty Reserve has emerged as one of the principal means by which cyber-criminals around the world distribute, store, and launder the proceeds of their illegal activity.” The indictment by the federal government has sparked fears of the federal government pursuing other digital services such as Bitcoin, an online currency.
http://www.wired.com/threatlevel/2013/05/liberty-reserve-indicted
http://www.nytimes.com/2013/05/29/nyregion/liberty-reserve-operators-accused-of-money-laundering.html?pagewanted=all
http://www.washingtonpost.com/business/economy/seven-men-charged-in-liberty-reserve-global-money-laundering-operation/2013/05/28/0999536c-c7ce-11e2-8da7-d274bc611a47_story.html