Liberty Reserve

Liberty Reserve was a Costa Rica-based centralized digital currency service that billed itself as the "oldest, safest and most popular payment processor, serving millions all around a world".wikipedia
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Digital currency

electronic moneydigital currencieselectronic purse
Liberty Reserve was a Costa Rica-based centralized digital currency service that billed itself as the "oldest, safest and most popular payment processor, serving millions all around a world". Based in San José Costa Rica, Liberty Reserve was a centralized digital currency service that allowed users to register and transfer money to other users with only a name, e-mail address, and birth date.
Another known digital currency service was Liberty Reserve, founded in 2006; it lets users convert dollars or euros to Liberty Reserve Dollars or Euros, and exchange them freely with one another at a 1% fee.

Money laundering

money-launderinglaunderinglaunder
The United States charged founder Arthur Budovsky and six others with money laundering and operating an unlicensed financial transaction company.
A common approach was to use a digital currency exchanger service which converted dollars into a digital currency called Liberty Reserve, and could be sent and received anonymously.

Gold Age

GoldAge Inc.
From 2002 to 2006, United States businessmen Arthur Budovsky and Vladimir Kats ran a digital currency exchange service known as Gold Age.
Budovsky subsequently fled the country and founded Liberty Reserve to perform a similar service as Gold Age.

Costa Rica

🇨🇷Costa RicanCRI
Liberty Reserve was a Costa Rica-based centralized digital currency service that billed itself as the "oldest, safest and most popular payment processor, serving millions all around a world". Based in San José Costa Rica, Liberty Reserve was a centralized digital currency service that allowed users to register and transfer money to other users with only a name, e-mail address, and birth date.

Patriot Act

USA PATRIOT ActUSA PATRIOTPATRIOT Act III
In May 2013, Liberty Reserve was shut down by United States federal prosecutors under the Patriot Act after an investigation by authorities across 17 countries.

San José, Costa Rica

San JoséSan JoseSan Jose, Costa Rica
Based in San José Costa Rica, Liberty Reserve was a centralized digital currency service that allowed users to register and transfer money to other users with only a name, e-mail address, and birth date.

United States dollar

$US$USD
Deposited funds were then "converted" into Liberty Reserve Dollars or Liberty Reserve Euros, which were tied to the value of the U.S. dollar and the euro, respectively, or to ounces of gold.

Euro

EUReuros
Deposited funds were then "converted" into Liberty Reserve Dollars or Liberty Reserve Euros, which were tied to the value of the U.S. dollar and the euro, respectively, or to ounces of gold.

Multi-level marketing

multilevel marketingMLMnetwork marketing
Service was popular among currency brokers and multilevel marketing companies.

Foreign exchange market

foreign exchangeforexcurrency exchange
According to Forex Magnates, a specialized forex news service, Liberty Reserve was "the leading payment channel for traders in emerging and frontier markets."

Internal Revenue Service

IRSinternal revenueBureau of Internal Revenue
Richard Weber, head of the U.S. Internal Revenue Service criminal investigation unit, declared, "If Al Capone were alive today, this is how he would be hiding his money".

Al Capone

CaponeAlphonse "Scarface" CaponeAl "Scarface" Capone
Richard Weber, head of the U.S. Internal Revenue Service criminal investigation unit, declared, "If Al Capone were alive today, this is how he would be hiding his money".

Felony

feloniesfelonfelons
In July 2006, the duo were indicted on charges of operating an illegal financial business, a felony.

Security hacker

hackerhackinghackers
In 2012, a group of hackers attempted to blackmail anti-virus software company Symantec into transferring $50,000 into a Liberty Reserve account.

Blackmail

blackmailingblackmailedblackmailer
In 2012, a group of hackers attempted to blackmail anti-virus software company Symantec into transferring $50,000 into a Liberty Reserve account.

Symantec

Symantec CorporationClearwell SystemsGuardianEdge
In 2012, a group of hackers attempted to blackmail anti-virus software company Symantec into transferring $50,000 into a Liberty Reserve account.

Adolfo Suárez Madrid–Barajas Airport

MadridMadrid, SpainBarajas Airport
Arthur Budovsky was arrested by Spanish police at Madrid's Barajas International Airport as he attempted to return to Costa Rica where he had citizenship.

Shell corporation

shell companyshell companiesShell
In Costa Rica, a court order was issued to seize the "financial products and services" of Budovsky, Maxim Chukharev, and the six apparent shell companies.

Preet Bharara

Preet Bharara, a United States prosecutor working on the case called Liberty Reserve a "black market bank", created and structured to "facilitate criminal activity".

Credit card fraud

skimmingfraudAccount takeover
It has been linked to crimes including credit card fraud, identity theft, investment fraud, computer hacking, child pornography and narcotics trafficking.

Identity theft

identity thiefidentity thievesidentity fraud
It has been linked to crimes including credit card fraud, identity theft, investment fraud, computer hacking, child pornography and narcotics trafficking.

Securities fraud

investment fraudstock fraudfraud
It has been linked to crimes including credit card fraud, identity theft, investment fraud, computer hacking, child pornography and narcotics trafficking.

Hacker

hackinghackershack
It has been linked to crimes including credit card fraud, identity theft, investment fraud, computer hacking, child pornography and narcotics trafficking.

Child pornography

child pornchild pornographerpornography
It has been linked to crimes including credit card fraud, identity theft, investment fraud, computer hacking, child pornography and narcotics trafficking.