The official website of Liberty Reserve (), known for its services such as payment processing and transfer has been shutdown by the authorities for alleged involvement in money laundering.
Liberty Reserve Owner Arthur Budovsky Belanchuk has been arrested during money laundering investigation operation in Spain, conducted by police officers from USA and Costa Rica on Friday.
The Ukrainian origin Costa Rican national Belanchuk was under the eyes of investigators since 2012 for his online business of payment processor company LIBERTY RESERVE.
Some reports are stating that investigators back in the US requested the police in Costa Rica for an inside investigation into Belnachuk’s office and house San Jose in Heredia. According to the reports, Budovsky’s businesses in Costa Rica seemingly were financed by money from a drug trafficking and child pornography websites.
New York Connection:
Back in 2006, the U.S Justice Department came up with a statement that Budovsky and Vladimir Kats were charged in july 2006 by the New York State on the ground of conducting a financial business which as illegitimate. The business was being operated from their rented apartment in Brooklyn and was under the name Goldage Inc. Since 2002 when they first initiated their online business without any license, around 30 Million US Dollars have been transmitted to the digital currency accounts which they own. The online business was under the name ‘’Liberty Reserve”.
Both of them on the grounds of operating an illegal business got arrested and were sentenced to imprisonment for a period of more than 5 years.