You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

Indictment throws light on world of digial currency


NY indictment filed in $6B money-laundering case

By Raphael Satter

and Tom Hays

Associated Press

NEW YORK (AP) — The founder of an online currency transfer business was indicted in the United States along with six other people in a $6 billion money-laundering scheme described as “staggering” in its scope, authorities said Tuesday.

Arthur Budovsky is the founder of Liberty Reserve, a Costa Rica-based website long favored by cybercrime scammers. He was arrested in Spain on Friday. A defendant identified as Budovsky’s partner, Vladimir Kats, was in custody in New York.

Authorities say the network processed at least 55 million illegal transactions worldwide for 1 million users, including 200,000 in the United States. They call the international money-laundering case the largest ever.

“The scope of the defendants’ unlawful conduct is staggering,” said an indictment unsealed in federal court in Manhattan. In announcing the case, U.S. Attorney Preet Bharara said the network “became the bank of choice for the criminal underworld.”

Its digital currency service was designed to shield the identity of crooked users seeking to launder ill-gotten gains, he said.

“The coin of the realm was anonymity,” he said. “It was the opposite of a know-your-customer policy.”

In a statement, Costa Rica police confirmed that Budovsky had been arrested in Spain on money laundering charges and that several premises linked to his company had been raided. A notice pasted across Liberty Reserve’s website Tuesday morning said the domain “has been seized by the United States Global Illicit Financial Team.”

Attempts to reach Liberty Reserve by phone and email were not immediately successful.

Its demise is likely to send a sharp shock across the Internet.

The indictment calls the network “one of the principal means by which cyber criminals around the world distribute, store and launder proceeds of their illegal activity … including credit card fraud, identity theft, investment fraud, computer hacking, child pornography and narcotics trafficking.”

Liberty Reserve allowed users to open accounts using fictitious names, including “Russian Hacker” and “Hacker Account.” The network charged a 1 percent fee on transactions.

B


Reader Comments ...


Next Up in Business

Miamisburg candy store now selling pickle juice soda
Miamisburg candy store now selling pickle juice soda

Are you ready for Pickle Juice Soda Pop? Miamisburg-based Grandpa Joe’s Candy Shop is now selling dill pickle-flavored pop in stores and online. The vintage-style store at 42 South Main St. in downtown Miamisburg has more than 200 bottles of specialty sodas. “If you’re the kind of pickle lover who relishes all things pickled, this...
Waffle House co-founder dies a month after business partner
Waffle House co-founder dies a month after business partner

Both of the founders of Waffle House have died, just two months apart. Co-founder Tom Forkner died earlier this week at 98 years old, just two months after his business partner Joe Rogers Sr. died in early March. Rogers was 97 years old. “Tom will be remembered as a man of honesty and integrity,” Waffle House Chairman Joe Rogers Jr...
Ohio’s largest 100 employers in 2017: Walmart tops the list
Ohio’s largest 100 employers in 2017: Walmart tops the list

Walmart is back on top as Ohio’s biggest employer, regaining the No. 1 spot from the Cleveland Clinic, which usurped the giant Bentonville, Ark.-based retailer last year, according to a new list of the state’s top 100 employers. Walmart — with 173 retail operations, including nearly two dozen in the Dayton area — has 50,500...
PHOTOS: Nearly $1M Washington Twp. home for sale
PHOTOS: Nearly $1M Washington Twp. home for sale

A Washington Twp. house that features panoramic views of a wooded lawn is on sale for nearly $1 million. The home, located at 10765 Falls Creek Lane in the Waterbury Woods subdivision, is listed for $999,000 by Coldwell Banker Heritage Realtors. It sits on three-fourths of an acre property on a cul-de-sac. The 8,350 square feet of living space features...
Time running out on Premier, UnitedHealthcare negotiations
Time running out on Premier, UnitedHealthcare negotiations

Negotiations between southwest Ohio’s largest health system, Dayton-based Premier Health, and UnitedHealthcare, the nation’s largest health insurance company, remained at a standstill Thursday with the first deadline for their contract to expire rapidly approaching. UnitedHealthcare’s contract with Premier hospitals is set to expire...
More Stories