Feds in NY charge 7 in $6B digital currency money-laundering case; Costa Rica, Spain arrests – The Washington Post

After the seizure of Mt. Gox’s Dwolla account, the federal government continues to pressure those who exchange and use virtual currencies, especially when the anonymity allows for money laundering.  Today, the government announced arrests and seizures of Liberty Reserve, a company that provided transfer and exchange service of virtual currencies, including Bitcoin.  News agencies describe Liberty Reserve as a favorite of cybercriminals due to lax anti-money laundering recordkeeping for customers.

Feds in NY charge 7 in $6B digital currency money-laundering case; Costa Rica, Spain arrests – The Washington Post.

Liberty Reserve Operators Accused of Money Laundering – NYTimes.com.

 

Update:  The sealed indictment can be found here.  The charges include Conspiracy to Commit Money Laundering and Conspiracy to Operate Unlicensed Money Transmitting Business.  The latter charge is the same that successfully brought down e-gold (referenced in the Liberty Reserve indictment), and which is being used as a basis for seizure of Mt. Gox accounts.

Liberty-Reserve-et-al.-Indictment