The concept of digital currency was well-known way before Bitcoin and consorts staked their claim. One of the most notorious digital currencies in history is Liberty Reserve, which ultimately failed because it was still centralized. Furthermore, the founder of Liberty Reserve pleaded guilty to money laundering recently, a concept that is not possible with Bitcoin by any means.
Liberty Reserve Founder Dug His Own Grave
One of the main reasons why Liberty Reserve became so popular and well-known throughout the years is because this digital currency was used for criminal activities all over the world. Laundering money online was never easier than by using Liberty Reserve, as this particular digital currency was completely anonymous from day one.
It should come as no secret to find out the founder of this once popular digital currency was guilty of criminal activities himself. Based on a report by the United States Department of Justice, Arthur Budovsky pleaded guilty to laundering money worth more than US$250 million through the Liberty Reserve protocol.
U.S. Attorney Preet Bharara of the Southern District of New York stated: