"Base on local media reports, Arthur Budovsky Belanchuk, the owner of Liberty Reserve website, has been arrested in Spain for charges relating to money laundry. Accordingly, Budovsky was involved in financial crimes for transferring funds made by child pornography websites and drug trafficking.
A lot of threads and discussions have been started in Internet with regard to locking down Liberty Reserve payment system. At this time, many famous and popular websites are using Liberty Reserve as a reliable payment method. Currently a large number of users from different countries have deposited millions of Dollars in their accounts in Liberty Reserve. No information is available about the future of deposited funds.
According to unofficial reports, some $150 million of money is the least cash flow of Liberty Reserve payment system, which has managed to attract customers from all over the world. During the recent years, many hackers have utilized Liberty Reserve for charging their clients and victims anonymously. Unlike other popular payment systems, Liberty Reserve doesn’t track the information of its users. The system also deducts an small amount of money per transaction. Liberty Reserve allows no refunds and has no mechanism for performing a chargeback. The site has security protections to help lessen the likelihood of an unauthorized transaction occurring.
It is worth mentioning that Liberty Reserve (LR) is officially blocked in Iran."
