Liberty Reserve has been shut down after U.S. and Costa Rican authorities arrested founder Arthur Budovsky Belanchuk in Spain. Central American newspaper The Tico Times reports that Budovsky was arrested Friday. Investigators say that Budovsky’s businesses in Costa Rica, including Liberty Reserve, were used to launder money for child pornography websites and drug trafficking.
Liberty Reserve has offered mostly unregulated payment processing services for U.S. dollars and euros for years. Many users lost their money due to this incident and who knows whether they will get their money back or not. Liberty Reserve was one of popular payment processor to send/receive money.