Man Pleads Guilty to Laundering $250 Million in Digital Currency (Jan. 2, 2016)
Arthur Budovsky pleaded guilty in January after it was determined his company, Liberty Reserve, served as a global hub for laundering more than $250 million of ill-gotten funds from cybercriminals, according to a news release by the Justice Department’s Criminal Division of the Southern District of New York. The investigation spanned several countries. Budovsky pleaded guilty to one count of conspiring to commit money laundering and is scheduled to be sentenced May 6.
The fraudulent activity includes six other defendants, two of which pleaded guilty and received sentences of three and five years in prison. Among the remaining six defendants, two are awaiting sentencing and another two currently are fugitives.
Prior to U.S. government officials shutting down Liberty Reserve in May 2013, Budovsky had described Liberty Reserve as the Internet’s largest payment processor and money transfer system; in reality, however, the company laundered cybercriminals’ profits from investment fraud, credit card fraud, identity theft and computer hacking, the DOJ said.