NetBiznisz

LibertyReserve has been shut down and the owner arrested in Spain by authorities. LibertyReserve will not come back and all capital stored there is gone. This is no joke, just plain reality!

According to a Spanish newspaper, a person named “Arthur Budovsky” age 39, was arrested yesterday in Spain as a part of a money laundering investigation performed jointly by police agencies in the United States and Costa Rica. According to to José Pablo González, Budovsky is a Costa Rican citizen of Ukrainian origin. Prosecutors conducted raids in his house and offices in Escazá, Santa Ana, southwest of San José and in the province of Heredia, north of the capital.

Budovsky has been under investigation since 2011 for money laundering using a company he created in the country, which is “Liberty Reserve”. According to the U.S. Justice Department on July 27, 2006 Budovsky and a partner identified as Vladimir Kats were indicted by the state of New York on charges of operating an illegal financial business, GoldAge Inc., from their Brooklyn apartments.

They transmitted funds worth at least $30 million to digital eCurrency accounts worldwide since the beginning of the operations ins 2001. The exchanger received and transmitted $4 million between Jan. 1 2006, and June 30, 2006 as part of the money laundering scheme. Accounts of customers were opened with limited documentation of identity, then the exchanger purchased virtual funds through those accounts. The fees sometimes exceeded $100,000.

Budovsky and Kats were sentenced to five years in prison for engaging in the business of transmitting money without being licensed. This is a violation of the states banking laws. According to the newspaper they did got probation. How the story will end this time is still not clear. One thing is 100% sure: He will not get away with probation again.

Now what does it mean for us? We can expect a major collapse wave of HYIPs now, as LibertyReserve was probably the biggest foothold of the industry. We also can expect a major wave of closures among eCurrency exchanges, as most of them should have lost significant amounts of funds now. Also the HYIP industry giants could be in a serious danger by now.