Liberty Reserve Founder Faces Federal Court Appearance Today

A man accused of creating an online, underworld bank that helped launder $6 billion for drug dealers, child pornographers, identity thieves and other criminals is facing his first court appearance in Manhattan. Arthur Budovsky the Costa Rican founder of currency transfer and payment processing company Liberty Reserve, is scheduled to appear in federal court in Manhattan this afternoon. He was extradited from Spain to the U.S. on Friday. Once an American, Budovsky renounced his citizenship after setting up the company in Costa Rica, where all online businesses are legal and there aren't laws regulating them. Budovsky was arrested in Spain on May 23 and held to face a Manhattan indictment against him and others. Budvosky has said he created a secure platform for online financial transactions, and Liberty Reserve cooperated with investigators. When he announced the charges in May 2013, U.S. Attorney Preet Bharara said Liberty Reserve "became the bank of choice for the criminal underworld" and the case might represent the largest international money laundering case ever brought by the United States.