Costa Rica-based Liberty Reserve digital currency business has been taken offline following the arrest of its founder, Arthur Budovsky, in Spain over charges of money laundering.
Costa Rican authorities arrested Budovsky during an ongoing investigation that also involved US authorities.
As part of the investigation, police had also raided three homes and five businesses associated with his money exchange service, seized papers and digital documents that are to be handed over to the US authorities.
According to the authorities in the Central American country, the company closed its offices in Costa Rica in 2011, although its website continued to operate.
Costa Rican police revealed that Budovsky was sentenced in 2007 to five years probation after he was found guilty by a New York court of running an illegal financial services business same as Liberty Reserve.
Describing itself as the Internet’s ‘oldest, safest and most popular payment processor… serving millions all around a world’, Liberty Reserve enabled users to open accounts and transfer money through credit cards, bank wire, postal money order or other money transfer service globally.
Additionally, the company sought minimum requirements for opening an account, including a name, date of birth and an email address.
