Friday 18 June 2021

Liberty Reserve Co-Founder Arthur Budovsky Pleads Guilty

Arthur Budovsky (in courtroom sketch) admitted he knew Liberty Reserve was ‘susceptible’ to criminal use. Photograph: Marilyn Church/Reuters
Arthur Budovsky (in courtroom sketch) admitted he knew Liberty Reserve was ‘susceptible’ to criminal use. Photo: Marilyn Church/Reuters

QCOSTARICA | Arthur Budovsky, the Ukrainian naturalized Costa Rican, the founder of the now defunct notorious cryptocurrency service Liberty Reserve, which operated from Costa Rica, admitted the company was dedicated to money laundering.

Budovsky, 42, pled guilty to one charge of conspiring to run a money laundering service, before the U.S. District Judge Denise L. Cote of the Southern District of New York on Friday.

- Advertisement -

According to a report by The Guardian, Budovsky admitted he knew Costan Rican-based Liberty Reserve was “susceptible” to be used by criminals, including for Ponzi schemes.  “I knew what I did was illegal,” Budovsky, in blue jail clothing, told US District Judge Denise Cote.

Budovsky faces up to 20 years in prison. He is scheduled to be sentenced on 6 May.

Liberty Reserve customers were able to open an account anonymously using nothing more than an email address, and unlike Bitcoin it didn’t have a public ledger, meaning it quickly became a haven for thousands of cyber criminals across the world. US prosecutors call it one of the world’s most widely used digital currency services, which was used by criminals involved in hacking, child pornography and drug trafficking.

“After a prior conviction for operating an unlicensed money transmitting business, Budovsky developed Liberty Reserve, incoroporated in Costa Rica, which quickly became a premier service used by criminals around the world to launder their criminal proceeds,” Assistant Attorney General Leslie R. Caldwell said in a statement. “As a result of this global investigation, however, Budovsky was returned to the United States to face justice once again.”

- Advertisement -

The company was shut down in May 2013 amid US efforts to crack down on the use of digital currencies including bitcoin to evade law enforcement and launder illicit proceeds, involving more than US$6 billion dollars of proceeds from 2006 to 2013.

Four others, Liberty Reserve co-founder, Vladimir Kats, Azzeddine El Amine, Mark Marmilev and Maxim Chukharev, have already pleaded guilty. Marmilev and Chukharev were sentenced to five years and three years in prison, respectively.  Kats and El Amine await sentencing.

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

The Best Sports To Play On A Beach

Costa Rica has some of the best beaches in the world....

Since 2018 MECO has received contracts from the State for more than ¢139 billion

QCOSTARICA - Almost ¢140 billion colones (US$227 million dollars) is the...

MOST READ

Informants assisted OIJ in corruption investigations, says the minister

QCOSTARICA - The investigation into alleged bribery of public officials in exchange for contracts for road works, received help from informants within the Consejo...

Nathalie Álvarez Mesén’s feature debut, Clara Sola, ready for the Cannes Directors’ Fortnight

Q ENTERTAINMENT (CINEUROPA) Nathalie Álvarez Mesén’s debut feature, Clara Sola, is ready to take part in this year’s Directors’ Fortnight at the Cannes Film...

Despite investigation, construction of road works by H. Solís will continue

QCOSTARICA - Five major road works under the responsibility of the H. Solís company will continue in development despite investigations for alleged corruption involving...

OIJ investigation into road works corruption leads to inquiries in Panama

QCOSTARICA - The prestige of the company of some of the richest men in Costa Rica hangs by a thread. For many, the MECO...

Apple extended the life of its older iPhones

QTECH - Whether due to the global economic crisis caused by the Covid-19 pandemic or due to shortages of electronic components, raw materials, factory...

“Caso Cochinilla”: Name arose when comparing parasite with hidden corruption

QCOSTARICA - On Monday, the Organismo de Investigacion Judicial (OIJ) moved to the raid, seize and arrest of their investigation into corruption of public...

Since 2018 MECO has received contracts from the State for more than ¢139 billion

QCOSTARICA - Almost ¢140 billion colones (US$227 million dollars) is the amount the MECO construction company was able to snare for public works contracts...

Your cell phone can now notify you if you had contact with a positive case of covid-19

QCOSTARICA - Fifteen months after the national emergency against covid-19 was declared, Costa Ricans will have a digital platform where you can be notified...

Today’s Vehicle Restriction June 17: 7 & 8 CANNOT circulate

Today, Thursday, June 17, vehicles with plates ending 7 & 8 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.