U.S. federal authorities accused the company Liberty Reserve, based in Costa Rica, of using their virtual currency system for money laundering operations.
In a statement, officials said authorities in Spain, Costa Rica and New York arrested five people on Friday and seized bank accounts and Internet domains associated with the company, Liberty Reserve.
Costa Rican prosecutor José Pablo González said Liberty Reserve and related businesses were used to launder funds from child pornography websites and drug trafficking.
“The company was designed to help criminals to conduct illegal transactions and laundering the proceeds of their illegal activities,” said Manhattan District Attorney, Preet Bharara.
The federal authorities stated the founder Arthur Budovsky is on charges of money laundering and operating a money transfer business without a license.
The Costa Rica News (TCRN)
San Jose Costa Rica
