Prison for Liberty Reserve CTO

[chayton]

Not sure what section of the site this should go in or if it's already been discussed? I'm not sure if anyone remembers, but a couple years ago there were lots of people asking about (and spamming for) casinos that accepted Liberty Reserve. Suddenly we just quit hearing about them, and this is why - they were shut down in May of last year by the US government and a bunch of the principals were indicted. The CTO of the company pled guilty a few months ago and was just sentenced to 5 years in prison. This is from the press release earlier this year.

Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve was created, structured and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes. It emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity. Liberty Reserve was used extensively for illegal purposes, functioning as the bank of choice for the criminal underworld because it provided an infrastructure that enabled cybercriminals around the world to conduct anonymous and untraceable financial transactions.

Before being shut down by the U.S. government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who conducted approximately 55 million transactions through its system totaling more than $6 billion in funds. These funds encompassed suspected proceeds of credit card fraud, identity theft, investment fraud, computer hacking, child pornography, narcotics trafficking, and other crimes.

Full story:

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