The bad news never stops. At least, this has been real for Bitcoin lately. The federal authorities have shut down Liberty Reserve, a cryptocurrency exchange platform.. Prosecutors are claiming that the service was, actually, a $6 billion scheme of money laundering, specifically designed to help hackers and criminals hide the origin of their illegal money. He said he tested the platform himself and was able to create over 100 accounts, which would have enabled him to withdraw up to US$20,000 from each one. He compared it to the pre-Bitcoin exchange platform Liberty Reserve, which was investigated by 17 countries and shut down in 2013. Its operator, Arthur Budovsky, was charged with money ... Started in 2006 and based in Costa Rica, Liberty Reserve was a centralized digital currency exchange and payment processor until it was shut down by U.S. prosecutors in May 2013. Early crypto ... Can Liberty Reserve’s case be a red alert for Bitcoin? By Maria Santos Last updated on January 2, 2018 at 00:00 No Comments As you already know, the exchange platform Liberty Reserve was recently shut down by the USA federal authorities due to alleged criminal transactions and money laundering (we talked about it here ). Bitcoin (BTC) was not the first digital currency, there were actually several digital currencies in the pre-Bitcoin era, including but not limited to DigiCash, e-gold, and Liberty Reserve. The failure of these three digital currencies teaches the important lesson that centralization threatens the survival of any non-government currency, as will be described in this article. […] Binance is far less distributed than Liberty Reserve, and is, instead, controlled by a single mind. As much as they want to tell people that they have a blockchain and they are decentralised, multiple entities that are run by the same controlling mind are by definition centralised. Bitcoin was designed with a fixed and set protocol. If the protocol can be changed by individuals or developer ...
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