Liberty Reserve digital money service forced offline

What the hell is going on ?

Liberty Reserve - a Costa Rican-based digital currency service - has been shut down after the reported arrest of its founder.

Authorities in the Central American country said Arthur Budovsky had been taken into custody in Spain on suspicion of money laundering, following an investigation which also involved the US.

They added that police had raided several of Mr Budovsky's properties and seized his computer servers.

The site went offline on Thursday.

Source link http://www.bbc.co.uk/news/technology-22680297

Many chinsese traders use LR for online transctions, this will be a problem for a lot of traders when it comes to withdrawing money, i spoke today to a hotforex rep regarding the LR withdrawal issue and i was surprised when they gave me the option to use either moneybookers or webmoney and i was relieved. I hope all brokers can be as considerate.

Not only chinese even lot of Indian traders dealing in fx use LR to fund the account because of the ban from RBI to trade in forex market.But I never used LR ,I am already aware of the budovsky and their past goldpage legal problems,So always kept LR under my now or then list ,Also I recommended lot of Indian traders not to use LR told them to opt for paypal or Moneybookers instead,I always thought that some day liberty reserve will come under AML problems now it happened

I guess a lot of traders all over the world used LR for funding their accounts, not only from China or India.

LR news is really shocking for me at the first sight, i think I am lucky i did not leave too much money there and hotforex help me solve the problem.
LR problem affected a lot of people around me, many had lost a lot of money.

Dear Friends . its my recommendation and suggestion for you all , im using INSTAFOREX as my broker. i used it for as long as two and half years now. but this is the most shocking moment , when they freeze all the account which is funded through libertyreserve currency. u can imagine , they are asking to wait till six months to get our money or profit withdrawal , with 50% deduction. we already lost some of our money in the our Libertyreserve account.now INSTAFOREX has no consideration for their client. they just adding more problem for us by letting us to wait till six month with 50 % deductions in our fund. some brokers are considerable by this matter , they just let their client using any other option to withdraw their money from their account. but this INSTAFOREX are so selfish. hope u can get a lesson by reading this message . not to let you fall in to the same bad brokers lake me.. and my other friends around the world who choose instaforex as their brokers...
Regards to all

I still have a hope I will be able to withdraw my money from a wallet. There must be any way out sooner or later...
For now it's cool that at least I can withdraw from a broker account if I deposited through LR.
But I don't like this happening now, because I bet some other e-payment systems can fall very soon...

In simple words Instaforex is a scam broker. I also had a similar issue 01 years back when they freeze my account for no reason.

Should avoid at all cost.

Liberty Reserve is charged with 55 million illegal transactions of $ 6 billion arrested the owner of the world's largest underground payment system.