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Liberty Reserve Tech Chief Pleads Guilty in Massive Money Laundering Scheme
Mark Marmilev, 35, of Brooklyn, New York, pleaded guilty today before U.S. District Judge Denise L. Cote to conspiring to operate an illegal unlicensed money transmitting business that he knew involved the transmission of funds derived from criminal activity.
The former chief technology officer of Liberty Reserve, a company that operated one of the world’s most widely used digital currency services, Marmilev admitted to designing and maintaining the technological infrastructure for Liberty Reserve, which allegedly laundered billions in suspected criminal proceeds.
“Marmilev designed and maintained a massive criminal infrastructure in cyberspace for one of the world’s most widely used digital currency systems, which laundered billions in criminal proceeds,” said Assistant Attorney General Leslie R. Caldwell. “This is the third conviction in the largest international money laundering case ever brought by the government, and we will continue to ensure that virtual currencies are not misused to facilitate criminals hiding from the U.S. justice system.”
According to allegations contained in the indictment and statements made in related court proceedings, Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve was created, structured and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes, and it emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity.
Before being shut down by the government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who 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, child pornography, narcotics trafficking and other crimes.
Marmilev and co-defendants Vladimir Kats and Azzeddine el Amine previously pleaded guilty and await sentencing. The indictment also charged Liberty Reserve with conspiracy to commit money laundering and operation of an unlicensed money transmitting business, and the charges remain pending. Sentencing is scheduled for Dec. 12, 2014 for Mark Marmilev.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes|Cybercrime|White Collar Crime
- Source: DOJ Press Release ↗
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