Arthur Budovsky, who set up digital currency business (Liberty Reserve), is held as part of money-laundering investigation involving US.
On Tuesday, in the first use of the 2001 Patriot Act against a virtual currency, the Treasury Department invoked a section of the law to choke off Liberty Reserve from the U.S. financial system. The Treasury’s proposal would prohibit U.S. financial institutions from opening or maintaining accounts for foreign banks that process transactions for Liberty Reserve and require special steps to guard against any transactions involving it.
http://online.wsj.com/article/SB10001424127887323855804578511121238052256.html
The indictment: http://krebsonsecurity.com/wp-content/uploads/2013/05/Liberty-Reserve-et-al.-Indictment.pdf
http://www.guardian.co.uk/world/2013/may/28/liberty-reserve-arthur-budovsky-arrested-spain
What will be the effect on Bitcoin ?
http://mashable.com/2013/05/28/bad-news-bitcoin-liberty-reserve-shutdown/
Posted by Editor 
ClearSky Cyberdefense Forum 