Founder of Liberty Reserve Pleads Guilty to Laundering More Than $250M
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Re: Founder of Liberty Reserve Pleads Guilty to Laundering More Than $250M
#2Why is it illegal to operate money transfer? Why founders are responsible for the crimes committed by its users? Are they guilty because the business was "unlicensed" or did they specifically promoted crime in some way?
Re: Founder of Liberty Reserve Pleads Guilty to Laundering More Than $250M
#3Why is it illegal to operate money transfer? Why founders are responsible for the crimes committed by its users? Are they guilty because the business was "unlicensed" or did they specifically promoted crime in some way?
http://www.nytimes.com/2013/05/29/nyregion/liberty-reserve-o...
More details about the case when the charges were announced a couple of years ago.
Re: Founder of Liberty Reserve Pleads Guilty to Laundering More Than $250M
#4Why is it illegal to operate money transfer? Why founders are responsible for the crimes committed by its users? Are they guilty because the business was "unlicensed" or did they specifically promoted crime in some way?
Licensure requires compliance with various laws. Liberty Reserve was structured to not comply with any of those laws or regulations.
It's like anything else. If you operating a nightclub, and there's a crowd of people selling meth in the bathroom all night, you're facilitating a crime.
Re: Founder of Liberty Reserve Pleads Guilty to Laundering More Than $250M
#5[deleted]
Re: Founder of Liberty Reserve Pleads Guilty to Laundering More Than $250M
#6Isn't every non-US country, and every bank in those countries, operating an "unlicensed money-transmitting service" as far as the US government is concerned? I'm a little curious about where the lines are drawn.
Re: Founder of Liberty Reserve Pleads Guilty to Laundering More Than $250M
#7Isn't every non-US country, and every bank in those countries, operating an "unlicensed money-transmitting service" as far as the US government is concerned? I'm a little curious about where the lines are drawn.
No, see 31 US 5330 and related code sections.
Re: Founder of Liberty Reserve Pleads Guilty to Laundering More Than $250M
#8Why is it illegal to operate money transfer? Why founders are responsible for the crimes committed by its users? Are they guilty because the business was "unlicensed" or did they specifically promoted crime in some way?
It's not illegal to operate a money transfer business. Paypal, Venmo, Stripe, Square, etc. are all money transfer businesses.
However, in the US it is illegal to operate a money transfer business without getting the proper licenses and registrations at the federal, state, and local levels.
It's even more illegal to operate a money transfer business that's being used for laundering, know or be told of these laundering uses, and then not do anything about it.
Re: Founder of Liberty Reserve Pleads Guilty to Laundering More Than $250M
#9Why is it illegal to operate money transfer? Why founders are responsible for the crimes committed by its users? Are they guilty because the business was "unlicensed" or did they specifically promoted crime in some way?
It's not illegal to operate a money transfer business. Paypal, Venmo, Stripe, Square, etc. are all money transfer businesses. However, in the US it is illegal to operate a money transfer business without getting the proper licenses and registrations at the federal, state, and local levels. It's even more illegal to operate a money transfer business that's being used for laundering, know or be told of these laundering…
LR was based in Costa Rica.
Re: Founder of Liberty Reserve Pleads Guilty to Laundering More Than $250M
#10Read: "refused to cooperate with government ops".
Thank goodness they didn't find Satoshi yet.