Liberty Reserve Founder Sentenced To 20 Years In Prison

Arthur Budovsky (42), the creator of Liberty Reserve, a virtual currency before Bitcoin got into the game, was sentenced to 20 years in federal prison. According to the US government, the whole project of Budovsky was a $6 billion money-laundering operation.


For 7 years, starting in 2006, anyone could use Liberty Reserve’s website to transfer money with just little oversight. All the required information was someone’s name, email address, and date of birth. Unlike Liberty Reserve, banks have stricter standards to avoid funneling criminal funds. However, according to federal agents, that’s what Liberty Reserve just turned into, it was a most common payment method for cybercriminals, such as carders and identity thieves.

According to federal court, Liberty Reserve had more than 1 million customers worldwide, including 200,000 in the United States and it had around 12 million financial transactions per year.

The US government found out about Liberty Reserve since it was such a huge operation with very little insight. At the time, they were worried about that terrorists may use this method to fund their organizations. This is the reason why the US

Read more ... source: TheBitcoinNews