The founder of Liberty Reserve, a digital currency that has evolved as perhaps the most popular form of payment in the cybercrime underground, was reportedly arrested in Spain this week on suspicion of money laundering.
Police in Spain arrested Arthur Budovsky Belanchuk, 39, as part of a money laundering investigation jointly run by authorities in New York and Costa Rica.
According to passive DNS data collected by the ISC, at least five digital currency exchanges —milenia-finance.com, asianagold.com, exchangezone.com, moneycentralmarket.com and swiftexchanger.com — also went offline this week, their DNS records changed to the same sinkhole entries at shadowserver.org
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Liberty Reserve digital currency service taken offline, founder arrested