$6 Billion Money Laundering Charges Against Liberty Reserve

Wednesday, May 29, 2013

coins, bank (Tattooed JJ/flickr)

Diane Brady, Bloomberg BusinessWeek senior editor and author of Fraternity (Spiegel & Grau, 2012) talks about the charges against Liberty Reserve, how the scheme allegedly worked, and what the fall out will be.


Diane Brady

Comments [9]


It's confidence, stupid!

People have no confidence in USD, EUR and are looking for an alternative...

I think there are two issues that were deliberately mixed - virtual currency and Know Your Customer requirements for US banks. It sounds like Liberty Reserves had very lax KYC standard. This issue was used to attack the "virtual currency" which is a real threat to traditional currency.

Just my virtual 2 cents...

May. 29 2013 11:01 AM
fuva from harlemworld

PRODUCERS: Has there been a BL primer on virtual currency and its implications? If not, can we get one? Many thanks.

May. 29 2013 11:00 AM


Yes. It seems that the quality of 'experts' is in a steady decline. Too many regular guests who appear to have gained their knowledge of the topic at hand by staying at a Holiday Inn Express the night before the interview.

May. 29 2013 10:59 AM

Overusage of the word "terrorist" by the guest. Seriously show me evidence this is being used by "terrorists" and then define who and what those terrorists are.

May. 29 2013 10:56 AM

They keep saying "fake money".

With all the printing, is US dollar real?

May. 29 2013 10:55 AM
fuva from harlemworld

Well, Brian asked for an explanation of virtual/online currency, but the guest did not deliver. Happens a lot.

May. 29 2013 10:52 AM
Sheldon from Brooklyn

Liberty Reserve didn't give as much in "campaign contributions" aka - protection money, to the White House and Congress as HSBC did. Hence Preet - the enforcer, was called in to do the proverbial knee-breaking. Now that's a racket.

May. 29 2013 10:28 AM

Most descriptions I've seen of Liberty Reserve say it's "similar to Bitcoin." So is bitcoin also going to get shut down for the same reasons? What are the differences?

May. 29 2013 10:09 AM

Meanwhile the greatest financial crooks of all, the legal, "legitimate" banks, continue to enjoy incredible impunity.

Folks, do you really think this prosecution was motivated by a concern for justice?

Or was this just another case of "The Godfather" making an example of someone who presented a threat to his dominance, in this case Liberty Reserve.

May. 29 2013 06:17 AM

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