1. #1
    mr_nims's Avatar
    mr_nims is offline Senior Member
    Join Date
    Aug 2009
    Posts
    991
    Points
    101,671
    Credits
    18,303
    Post Thanks / Like
    vBActivity - Stats
    vBActivity - Bars
    Follows
    14
    Following
    1
    Follow

    Exclamation Liberty Reserve Shuts Down!!

    Hi Folks,

    Seems Liberty Reserve has shut down!!
    BREAKING!

    Read below.
    Liberty Reserve exchange shuts down, founder arrested - CoinDesk

    *************************
    Liberty Reserve, a Costa Rica-based private currency exchange with its own digital currency, has shut down around the same time its founder has been arrested in connection with a money laundering investigation.

    Arthur Budovsky, the exchange’s founder, was arrested Friday in Spain, according to the Costa Rican newspaper The Tico Times. The paper reported that the money laundering investigation was a joint operation between authorities in the US and Costa Rica. (This YouTube video, posted Saturday, features a Costa Rican prosecutor discussing the investigation.)
    It added that US authorities are likely to seek to extradite Budovsky to the US.

    Liberty Reserve used its own digital currency — also called the Liberty Reserve, or LR — to provide payment processing services to customers holding US dollars or euros. Bitcoin Magazine credits Liberty Reserve with being “one of the chief enablers of the Bitcoin economy’s early growth”, noting that in 2011 Liberty Reserve and Dwolla were among the few services then available for people who wanted to transfer funds to exchanges to buy bitcoins.

    In addition to enabling such transactions for a low fee — a flat 1 percent with a maximum of $2.99 — Liberty Reserve, like Bitcoin, didn’t allow chargebacks. However, the LR exchange has experienced significant security problems several times in the past.

    In April 2011, it was revealed that Liberty Reserve customer information was accessible to Amazon. And a reported script problem in August 2012 ended up locking many users out of their accounts, some of which had thousands to tens of thousands of dollars in them.

    Liberty Reserve’s founder himself has had past run-ins with the law. According to Bitcoin Magazine, Budovsky and a partner — Vladimir Kats — were arrested in 2006 when US authorities determined their digital currency exchange, Gold Age, was conducting “money transmittal without a license”. The two were sentenced to five years of probation in 2007.
    Budovsky later left the US for Costa Rica, where he founded Liberty Reserve.

    Because Liberty Reserve enabled customers to set up accounts “using little more than a valid email address,” the exchange attracted a large number of users involved in cybercrime, security reporter Brian Krebs wrote Saturday in his blog, Krebs on Security. In fact, the first signs of the latest troubles for Liberty Reserve appeared on Thursday, before Budovsky’s arrest, when the exchange’s website went down.

    “The outage set off increasingly anxious discussions on several major cybercrime forums online, as many that work and ply their trade in malicious software and banking fraud found themselves unable to access their funds,” Krebs wrote.
    Around the same time Liberty Reserve’s website went offline, so did the sites for several other digital currency exchanges, Krebs added. They include asianagold.com, exchangezone.com, milenia-finance.com, moneycentralmarket.com and swiftexchanger.com.

    In the wake of these developments, Bitcoin users expressed mixed feelings about the potential impact on their preferred digital currency. Some said Liberty Reserve’s demise would prove a plus for Bitcoin, while others worried it could drive more cybercriminals to start using bitcoins.One reddit user had a more sanguine response.”LR was never a ‘competition’ to Bitcoins, it ‘lived’ totally on its own, therefore in my opinion, its closure has no effect on Bitcoins whatsoever,” noted reddit user Ponulens. “I used LR for many years, alone with other payment processors and its demise is simply a logical outcome for any and all payment systems out there, which are ‘short’ of getting money transmitting licenses all over the world and in US in particular. I’ve seen many of them “come and go” (e-gold, e-bullion, INTGold, StormPay, altergold, ePassporte… ) and for LR it was only a matter of time. The most important conclusion one should make from all these closures of the past, is to NEVER keep excessive amounts of funds in any of such payment processor systems.”
    **************************

  2. #2
    Rambo35 is offline Member
    Join Date
    Apr 2013
    Posts
    67
    Points
    381
    Credits
    837
    Post Thanks / Like
    vBActivity - Stats
    vBActivity - Bars
    Follows
    0
    Following
    0
    Follow

    Re: Liberty Reserve Shuts Down!!

    Wow, I think this took people by surprise. Thanks for sharing.

  3. #3
    Pinkrose is offline Member
    Join Date
    May 2013
    Posts
    69
    Points
    193
    Credits
    293
    Post Thanks / Like
    vBActivity - Stats
    vBActivity - Bars
    Follows
    0
    Following
    0
    Follow

    Re: Liberty Reserve Shuts Down!!

    Its the true fact now that the LR has shut down and thus we need to look for other alternative. I feel sad for people who had LR stock.

  4. #4
    mr_nims's Avatar
    mr_nims is offline Senior Member
    Join Date
    Aug 2009
    Posts
    991
    Points
    101,671
    Credits
    18,303
    Post Thanks / Like
    vBActivity - Stats
    vBActivity - Bars
    Follows
    14
    Following
    1
    Follow

  5. #5
    willyforex is offline Senior Member
    Join Date
    Mar 2013
    Posts
    111
    Points
    217
    Credits
    1,026
    Post Thanks / Like
    vBActivity - Stats
    vBActivity - Bars
    Follows
    0
    Following
    0
    Follow

    Re: Liberty Reserve Shuts Down!!

    Quote Originally Posted by Pinkrose View Post
    Its the true fact now that the LR has shut down and thus we need to look for other alternative. I feel sad for people who had LR stock.
    Was lucky never to use LR . Currently use Moneybookers for related transactions

  6. #6
    april is offline Senior Member
    Join Date
    Apr 2012
    Posts
    178
    Points
    452
    Credits
    1,438
    Post Thanks / Like
    vBActivity - Stats
    vBActivity - Bars
    Follows
    1
    Following
    0
    Follow

    Re: Liberty Reserve Shuts Down!!

    Yes and I am not lucky because I am using LR. I need to find a new one..

  7. #7
    techmac is offline Senior Member
    Join Date
    Sep 2012
    Posts
    2,706
    Points
    2,930
    Credits
    41,375
    Post Thanks / Like
    vBActivity - Stats
    vBActivity - Bars
    Follows
    0
    Following
    0
    Follow

    Re: Liberty Reserve Shuts Down!!

    And they have noticed the money laundry only after $6 billion?

  8. #8
    alanfx's Avatar
    alanfx is offline Senior Member
    Join Date
    Apr 2013
    Posts
    271
    Points
    409
    Credits
    3,572
    Post Thanks / Like
    vBActivity - Stats
    vBActivity - Bars
    Follows
    0
    Following
    0
    Follow

    Re: Liberty Reserve Shuts Down!!

    Quote Originally Posted by techmac View Post
    And they have noticed the money laundry only after $6 billion?

    That's how these authorities work ...

  9. #9
    Anivia is offline Member
    Join Date
    Oct 2012
    Posts
    94
    Points
    196
    Credits
    1,061
    Post Thanks / Like
    vBActivity - Stats
    vBActivity - Bars
    Follows
    0
    Following
    0
    Follow

    Re: Liberty Reserve Shuts Down!!

    I thought a lot of people would go die since they couldn't take their LR money. I was lucky my broker hotforex allowed me to withdraw my capital money that I deposited via LR to other payment methods.

  10. #10
    jigsaw's Avatar
    jigsaw is offline Member
    Join Date
    Jul 2012
    Posts
    50
    Points
    143
    Credits
    365
    Post Thanks / Like
    vBActivity - Stats
    vBActivity - Bars
    Follows
    0
    Following
    0
    Follow

    Re: Liberty Reserve Shuts Down!!

    It builds the foundation to the new era of bitcoin system.

» Rankings



 

» The most downloaded indicators

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. To slow down the Expert
    By Yves81 in forum Metatrader 4
    Replies: 1
    Last Post: 10-25-2006, 11:24 AM
  2. I am throwing down my gauntlet to programmers
    By jth in forum Metatrader 4
    Replies: 2
    Last Post: 10-23-2006, 11:49 AM
  3. Iwe's Up-Down strategy
    By white_tiger in forum Ideas and Suggestions
    Replies: 2
    Last Post: 04-25-2006, 03:56 AM
  4. I am taking Forex-tsd down
    By mj10 in forum General Discussion
    Replies: 12
    Last Post: 04-02-2006, 04:29 AM
  5. Shut Down!
    By codersguru in forum Tools and utilities
    Replies: 1
    Last Post: 03-24-2006, 02:27 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •