Liberty Reserve arrests are causing 'pain' to criminals

 

 Culled from BBC

The takedown of the Liberty Reserve digital cash exchange has caused "pain" to criminals who used the facility, according to a leading security expert.

Brian Krebs said he had seen comments on crime-linked restricted access forums suggesting many had suffered "steep losses".
US prosecutors published an indictment against the site's staff on Tuesday.
It says they deliberately helped users "distribute, store and launder the proceeds of their illegal activity".
Costa Rica-based Liberty Reserve had essentially functioned as a "black market bank" which had "allegedly processed 55 million separate financial transactions, and laundered a staggering $6bn [£4bn] in criminal proceeds", said Preet Bharara, Attorney for the Southern District of New York, at a press conference.
He added that about $25m had been seized following the arrest of Liberty Reserve's founder Arthur Budovsky in Madrid, Spain.
Four others have also been arrested and at least a further two men are being sought. In addition, computer servers used by the firm in Costa Rica and Switzerland are being examined.

Liberty Reserve Owner Arthur Budovsky Belanchuk Is Arrested

Liberty Reserve, one of the major e-currency processors has been shut down. Most users who tried accessing their accounts since the evening of 24th May 2013 have not been able to access the website.
As at the time of writing this report the official Liberty Reserve blog is still functional but no official statement has been released.
I sincerely hope this is not another egold saga which caused major losses to internet entrepreneurs who have embraced the ecurrency as the easiest way of accepting payments.
According to bubblews.com,  the 39-year-old owner of the Liberty Reserve payment processor provider --Arthur Budovsky Belanchuk, was arrested in a money laundering investigation/operation on Friday in Spain which was conducted by police officers from USA and Costa Rica.