The founder of
Liberty Reserve, a digital currency that
has evolved as perhaps the most popular form of payment in the
cybercrime underground, was reportedly arrested in Spain in the middle of May 2013 on
suspicion of money laundering. And the domain
libertyreserve.com has been seized so when people access that domain, it show the picture as below:
The effect of this event make every people use the
Liberty Reserve currency lost many money (especially the
virtual currency exchanger). Some people lost over $1000, and some lost only $1 or less. Many sites use Liberty Reserve has refund their customers/members, and that may cause the site's business DOWN.
Why do people use Liberty Reserve? Because Liberty Reserve has about 3 security layer(password, PIN, key) and it hiding the user in transaction (user is in the
ANONYMOUS state) so Liberty Reserve is a PERFECT place for people to make a transaction (and especially for hacker, they can laundering the money without being detected), and it never
LIMIT the account like
PAYPAL.
So, that's why Liberty Reserve was closed.
Hope Paypal and other online currency don't have the same fate....