LIBERTY RESERVE SHOT DOWN

Some days back, Arthur Budovsky Belanchuk was arrested under charges of financial crimes during worldwide investigation. He is the founder and owner of Liberty Reserve, one of the most popular electronic currencies online.This arrest is a huge blow for many businesses and individuals around the world. The website and currency system is currently offline, suggesting a government seize. A government seize of the funds could result in many customers of Liberty Reserve to lose huge sums of money.

The logic in this arrest seems a bit flawed. If we are to use this logic with all currencies, most every currency would be shut down. With the potential loss of Liberty Reserve, criminals will simply move to different e-currencies. It's just unfortunate that, if legitimate, Budovsky will face criminal charges for the actions of others.

Hopefully a fair trial is put into effect and legitimate customers of Liberty Reserve do not lose their funds.

Also base on local media reports, Arthur Budovsky Belanchuk, the owner of Liberty Reserve website, has been arrested in Spain for charges relating to money laundry. Accordingly, Budovsky was involved in financial crimes for transferring funds made by child pornography websites and drug trafficking.

A lot of threads and discussions have been started in Internet with regard to locking down Liberty Reserve payment system. At this time, many famous and popular websites are using Liberty Reserve as a reliable payment method. Currently a large number of users from different countries have deposited millions of Dollars in their accounts in Liberty Reserve.

No information is available about the future of deposited funds.
According to unofficial reports, some $150 million of money is the least cash flow of Liberty Reserve payment system, which has managed to attract customers from all over the world. During the recent years, many hackers have utilized Liberty Reserve for charging their clients and victims anonymously. Unlike other popular payment systems, Liberty Reserve doesn’t track the information of its users.

The system also deducts an small amount of money per transaction. Liberty Reserve allows no refunds and has no mechanism for performing a chargeback. The site has security protections to help lessen the likelihood of an unauthorized transaction occurring.
It is worth mentioning that Liberty Reserve (LR) is officially blocked in Iran.

Thanks.