Reports: Liberty Reserve Founder Arrested, Site Shuttered
Summary: Liberty Reserve founder Arthur Budovsky Belanchuk, 39, was reportedly arrested in Spain on money laundering suspicion as part of a joint investigation by New York and Costa Rican authorities, while libertyreserve.com went offline for three days and its domain records were pointed to Shadowserver.org sinkhole servers. Costa Rican prosecutor José Pablo González said Budovsky had been under investigation since 2011, and at least five other digital currency exchanges also had their DNS records changed to the same Shadowserver sinkhole entries.
Key Takeaway: A bulletproof hosting provider on Darkode.com said he stood to lose $25,000, and forum members described the shutdown as potentially the most massive ownage in the history of e-currency - a measure of how much criminal revenue moved through one unregulated payment processor.
Read the original at Krebs on Security ↗
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