Liberty reserve shut down indefintely

Following an arrest of the founders of the website in Spain,  Liberty Reserve, was shut down by FBI ; according to venture beat , one of the first websites to announce the closure, it states

Digital currency Liberty Reserve has been shut down after U.S. and Costa  Rican authorities arrested founder Arthur Budovsky Belanchuk in Spain.

Central American newspaper The Tico Times reports that Budovsky was arrested Friday.  Investigators say that Budovsky’s businesses in Costa Rica, including Liberty  Reserve, were used to launder money for child pornography websites and drug  trafficking.

This isn’t the first time Budovsky has been in trouble with the law. Back in  2006, the  United States indicted Budovsky and his partner, Vladimir Kats, on  charges related to dealings with their business GoldAge. Authorities said at that time that Gold Age had  illegally transmitted at least $30 million to digital currency accounts. The two  were sentenced to five years in prison in 2007 but only ended up serving  probation. Budovsky then skipped out of the United States and headed to Costa  Rica, where he subsequently started Liberty Reserve.


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