(Washington, D.C.) - On Oct. 10, 2014, Arthur Budovsky, founder of Liberty Reserve, an online payment processor and money transfer system allegedly used by global cyber criminals to launder and distribute criminal proceeds, was extradited to the United States from Spain. Budovsky was arrested in Spain on May 23, 2013 pursuant to a provisional arrest warrant issued by the Southern District of New York.
This case demonstrates how combining law enforcement resources throughout the world sends a strong message to criminals, that they will be pursued and prosecuted no matter where they reside, said Paul Morrissey, Assistant Director of the Secret Services Office of Investigations.
The Liberty Reserve investigation represents a coordinated, multi-year effort between the Secret Services New York and Washington Electronic Crimes Task Forces, the IRS-Criminal Investigation Divisions Global Illicit Financial Team, and U.S. Immigration and Customs Enforcements (ICE) Homeland Security Investigations (HSI).
Liberty Reserve had approximately one million users worldwide, including over 200,000 in the United States. These users conducted approximately 55 million transactions through its system, totaling more than $6 billion in funds. These funds encompassed suspected proceeds of credit card fraud, identity theft, investment fraud, computer hacking, narcotics trafficking, and other crimes.
The United States Attorneys Office for the Southern District of New York is prosecuting this case.
The Secret Service has taken a lead role in mitigating the threat of financial crimes since the agencys inception in 1865. As technology has evolved, the scope of the Secret Services mission has expanded from its original counterfeit currency investigations to include emerging financial, electronic, and cybercrimes. A component of the U.S. Department of Homeland Security, the Secret Service has established successful partnerships with both domestic and international law enforcement agencies, as well as private sector partners, in order to effectively combat financial crimes.
Source: U.S. Secret Service