Share this article
Private Digital Currency Founder Jailed for 20 Years
The founder of Liberty Reserve, a private digital currency system that was a predecessor of bitcoin, has been sentenced to 20 years in prison.
By Stan Higgins
Updated Sep 11, 2021, 12:16 p.m. Published May 9, 2016, 8:36 p.m.
The founder of Liberty Reserve, a private digital currency system shuttered by the US government for its alleged use by organized crime, has been sentenced to 20 years in prison.
Arthur Budovsky was arrested in the spring of 2013 and later extradited to the US for trial. He was ultimately charged with the operation an unlicensed money transmission business as well as conspiracy to both operate an unlicensed money services business and commit money laundering.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Budovsky pled guilty to the money laundering conspiracy charge in January after spending years trying to fight the US government’s efforts.
Prior to its shutdown in 2013, Liberty Reserve was a private money system that enabled the exchange of a digital currency called LR. The US government alleged at the time that Liberty Reserve functioned as a de facto financial hub for organized crime in the digital era.
The crackdown on the Liberty Reserve network has arguably impacted law enforcement efforts focused on bitcoin and other comparatively decentralized digital currencies. By contrast, Liberty Reserve functioned as a centralized transaction network.
In addition to the 20 years-long sentence, Budovsky was also ordered to pay a fine of $500,000.
"Despite all his efforts to evade prosecution, including taking his operations offshore and renouncing his citizenship, Budovsky has now been held to account for his brazen violations of US criminal laws," Manhattan U.S. Attorney Preet Bharara said in a statement last Friday.
Two other former Liberty Reserve employees, Vladimir Kats and Azzeddine El Amine, await sentencing, and the Justice Department says that charges remain pending against both the company itself as well as two other "fugitives".
Image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
ETH, ADA, XRP Lead Gains as Bitcoin Edges Higher on Fed Rate Cut Expectations
Asian equities opened the week slightly higher ahead of a heavy run of central bank decisions, including a Federal Reserve meeting where markets have largely priced in a 25-basis-point rate cut.
What to know:
- Bitcoin traded above $91,300 as Asian equities opened higher, with markets anticipating a Federal Reserve rate cut.
- Bitcoin rose 2% in 24 hours, facing resistance near $94,000, while Ether gained 3% to $3,135.
- Despite crypto market gains, sentiment remains cautious, with potential for a deeper slowdown without new liquidity.
Top Stories
