Libertyreserve.com has been down for over three days now and the arrest seems to be the reason behind the outage. Arthur Budovsky Belanchuk, a 39 year old male has been arrested by Spanish authorities as a part of their ongoing investigations into money laundering. The investigation is being jointly carried out by authorities in the US and Costa Rick and according to The Tico Times “U.S. officials likely will seek his extradition.”
Belanchuk has been under investigation since 2011 for money laundering through Liberty Reserve. Largely an unregulated money transfer business where users can open accounts with as little as an email address, the digital currency has a huge user base from underground economies and specifically cybercrime.
Carrying out a name server lookup for Libertyreserve.com shows up entries of ns1.sinkhole.shadowserver.org and ns2.sinkhole.shadowserver.org, which were apparently changed sometime on Friday. A non-profit organization Shadowserver helps ISPs and web hosting firms across the globe to eradicate botnets and malware infections on their servers.