There have been a lot of news stories recently regarding the growing popularity of digital currency. The technology has provided many companies an easier way to transact business internationally. Law enforcement has also noticed an increase in the number of transactions being conducted using this type of technology, and is investigating some of the companies employing these practices.
A recent 18-month investigation by the Department of Justice focused on the actions of Liberty Reserve, a company based in Costa Rica. The owners of the organization are alleged to have committed several white collar crimes, including money laundering, unlicensed money transferring and conspiracy.
The company is believed to have been a currency exchange for many criminal enterprises, such as those engaged in computer hacking or the distribution of child pornography. Officials estimate that nearly one million people used the company’s services, resulting in over $6 billion worth of money being laundered across the world.
Individuals would establish an account with Liberty Reserve by providing a name, email address and a birthday, but they did not have to prove any of the information being provided. This meant that many of the users took steps to conceal their identities.
Once the person had an account, he or she could buy credits from the company and send them to others in different locations. Liberty Reserve used third parties to complete these transactions. These third-parties would then submit the transactions to Liberty Reserve for payment or credit.
Law enforcement officials say Liberty Reserve is just one of many companies offering digital currency services to those looking to launder money. After the company’s assets were frozen, many individuals lost any funds that they currently had tied up. Prosecutors have offered to refund money to those engaged in legitimate activities.
These types of crimes will often be uncovered after extensive investigations by many different law enforcement agencies. These agencies may bring individuals in for questioning to learning more about the activities that are happening. If you are contacted by the police, do not speak to them without having an experienced criminal defense attorney present. An attorney can protect your rights and make sure that you do not say anything that could potentially be used against you at a later date.
If you have been charged with a white collar crime, you need to work with someone that understands how these cases proceed. Because these cases can be so complex, it is important that the attorney you select has handled similar matters in the past. This can help you present an aggressive defense to these accusations.
