Fraud Indictment Hit Liberty Reserve Owners, Company Shut Down.

Yesterday, Arthur Budovsky Belanchuk was arrested under charges of financial crimes during worldwide investigation. He is the founder and owner of Liberty Reserve, one of the most popular electronic currencies online.

This arrest is a huge blow for many businesses and individuals around the world. The website and currency system is currently offline, suggesting a government seize. A government seize of the funds could result in many customers of Liberty Reserve to lose huge sums of money.

The logic in this arrest seems a bit flawed. If we are to use this logic with all currencies, most every currency would be shut down. With the potential loss of Liberty Reserve, criminals will simply move to different e-currencies. It's just unfortunate that, if legitimate, Budovsky will face criminal charges for the actions of others.

Hopefully a fair trial is put into effect and legitimate customers of Liberty Reserve do not lose their funds.

Footnotes:
It will be hard to tell between legit and non-legit payments so everything could be seized by the Feds. But legally they are entitled to let everyone cashout their money but not sure if they will since LR was mostly used for illegal payments.