Updated: 05/26/2013 11:32
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On Friday, the owner of popular digital ecurrency Liberty Reserve was arrested at his home in San José and Heredia on as part of a money...

On Friday, the owner of popular digital e-currency Liberty Reserve was arrested at his home in San José and Heredia on as part of a money laundering investigation performed jointly by police agencies in the United States and Costa Rica. After the arrest, the website of Liberty Reserve has been shut down, obviously with no opportunity for the members to access their accounts any longer.

Millions of clients have been affected all over the world. As for the HYIP industry, this is going to be a shocking period for the investors online, for Liberty Reserve till recently has obviously been the most popular too for depositing funds to HYIP programs. Any HYIP currently working online has been accepting Liberty Reserve and now they will have to do something in order to remain on the stage. All Liberty Reserve account balances should be converted to other alternative e-currencies, such as Perfect Money, EgoPay, SolidTrustPay. I tend to believe many programs will scam down shortly without the financial support from Liberty Reserve, so we are about to face another hard period for the HYIP niche.

The prosecutors said: "Liberty Reserve, which operated without oversight from any global agency, was a convenient tool for foreign currency brokers, as it allowed them to bypass local legislation and avoid exchange rate fluctuations, particularly in developing countries. But its lack of oversight also attracted organized criminal elements." U.S. officials have targeted companies like GoldAge and Liberty Reserve for years, saying they are hotbeds for criminal activity including money laundering, drug trafficking and tax evasion.

In our turn, due to legal prosecution of Liberty Reserve, the arrest of the owner and the website shutdown, the HYIPNews portal terminates any kind using the Liberty Reserve e-currency. The programs monitored are prompted to convert the monitoring deposits in Liberty Reserve to Perfect Money or EgoPay. Otherwise, we won't be able to conduct effective HYIP monitoring. The cooperation with any program that refuses converting monitoring deposit to alternative e-currencies will be terminated immediately and this program will become blacklisted.

Indeed the shut down of LibertyReserve is a shocking news for the HYIP world, although we got used to that. Evocash shutdown, E-gold problems, now it's time for Liberty Reserve. Many e-currencies that deal with HYIP investments experience serious troubles sooner or later. So, who's next then?

About the author

Brett Sherpan has been working for seven years writing and editing for online and print media. He has held various editing and copywriting positions and can quickly and competently write copy for sales, marketing and editorial content. Brett is a consistently dependable team player, who thrives in a high-pressure environment, enjoying the challenges of meeting deadlines and am comfortable researching, writing and editing on a wide range of topics
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