Arthur Budovsky, Money Laundering, New York 2014

The founder of Liberty Reserve, a virtual currency used by cybercriminals to launder proceeds of their illegal activity, was extradited from Spain and arrived in New York this afternoon.

Arthur Budovsky, 40, a citizen of Costa Rica, was arrested in Spain in May 2013 after being indicted by a grand jury in the Southern District of New York.

Following his extradition by Spanish authorities, Budovsky arrived in New York this afternoon and will be presented before U.S. Magistrate Judge James C. Francis IV on October 11, 2014, at 2:00 p.m. Budovsky will be arraigned before U.S. District Judge Denise L. Cote on October 14, 2014, at 12:45 p.m.

"Arthur Budovsky allegedly built Liberty Reserve overseas to provide the international underworld with a crime-friendly digital currency and elude the scrutiny of American authorities. He even renounced his U.S. citizenship to try to escape facing justice in an American courtroom," said Assistant Attorney General Leslie R. Caldwell.

For years, Arthur Budovsky allegedly enabled criminals in the United States and around the world to process illegal payments and to launder billions of dollars in crime proceeds through Liberty Reserve.

According to allegations contained in the indictment and statements made in related court proceedings, Liberty Reserve was born out of Budovsky's unsuccessful experience running a third-party exchange service, called Gold Age Inc., for another digital currency, called E-Gold. In or about 2006, Budovsky was convicted in New York State of operating Gold Age Inc. as an unlicensed money transmitting business. In 2007, the operators of E-Gold were also charged with criminal offenses, including money laundering and operating an unlicensed money transmitting business, and subsequently ceased doing business.

Budovsky was indicted by a grand jury in the Southern District of New York for allegedly operating an unlicensed money transmitting business and conspiring to commit money laundering. He faces up to 30 years in prison if convicted. Budovsky will be arraigned in the Southern District of New York on October 14, 2014, at 12:45 p.m.

Source: https://www.justice.gov/archives/opa/pr/liberty-reserve-founder-extradited-spain