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In May 2013, the U.S. Justice Department seized Liberty Reserve, alleging the virtual currency service acted as a $6 billion financial hub for the cybercrime world. Prompted by assurances that the government would one day afford Liberty Reserve users a chance to reclaim any funds seized as part of the takedown, KrebsOnSecurity filed a claim shortly thereafter to see if and when this process might take place. This week, an investigator with the U.S. Internal Revenue service finally got in touch to discuss my claim. Federal officials charged that Liberty Reserve facilitated a "broad range of criminal activity, including credit card fraud, identity theft, investment fraud, computer hacking, child pornography, and narcotics trafficking." The government says from 2006 until the service's takedown, Liberty Reserve processed an estimated 55 million financial transactions worth more than $6 billion, with more than 600,000 accounts associated with users in the United States alone. While it's clear that the digital currency system for years was the go-to money-moving vehicle for many engaged in dodgy online activities, it also was favored by users primarily because it offered a relatively anonymous way to send irrevocable transfers globally with low fees. Indeed, the two stories I wrote about the closure of Liberty Reserve in 2013 remain among the most-read on this site, and have generated an enormous volume of emails from readers who saw many thousands of dollars held in legal…

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