Liberty Reserve was a Costa Rica-based centralized digital currency service that billed itself as the “oldest, safest and most popular payment processor, serving millions all around a world”. In May 2013, Liberty Reserve was shut bitcoin raphael satter by United States federal prosecutors under the Patriot Act after an investigation by authorities across 17 countries. The United States charged founder Arthur Budovsky and six others with money laundering and operating an unlicensed financial transaction company.
Based in San José Costa Rica, Liberty Reserve was a centralized digital currency service that allowed users to register and transfer money to other users with only a name, e-mail address, and birth date. Service was popular among currency brokers and multilevel marketing companies. According to Forex Magnates, a specialized forex news service, Liberty Reserve was “the leading payment channel for traders in emerging and frontier markets. Liberty employees were required to sign a confidentiality agreement to “maintain in strict confidentiality all information” about the company, including “administrative affairs, operations and financial details” for 15 years after leaving the company. Additionally they were required to notify management if issued a warrant to reveal such information. From 2002-06, United States businessmen Arthur Budovsky and Vladimir Kats ran a digital currency exchange service known as Gold Age.
In July 2006, the duo were indicted on charges of operating an illegal financial business, a felony. Liberty Reserve was incorporated by Budovsky in Costa Rica in 2006. Costa Rican authorities became aware of Liberty Reserve in 2009 and informed the business it needed a license to operate as a money transmitting business. In 2011, Liberty Reserve was denied a business license in Costa Rica, according to state prosecutor José Pablo González, due to lack of transparency about how the business was funded. Australian bank account numbers and British bank cards. Domain name seizure notice, citing 18 U.