Liberty Reserve money-laundering case: five questions answered

The case against Liberty Reserve, a digital currency provider, may be the largest money-laundering case in US history. Here's what you need to know.

4. Why is the case important?

Richard Drew/AP/File
Mythili Raman, left, acting assistant attorney general for the criminal division of the Department of Justice, accompanied by Preet Bharara, US attorney for the Southern District of New York, addresses a news conference in New York May 28, 2013.

In addition to being possibly the largest money-laundering case in US history, the Liberty Reserve investigation marks the first time a search warrant has been obtained for an online server in the Internet cloud. It was also the first time a provision in the Patriot Act (which allowed US officials to target Liberty Reserve even though it was founded abroad) had been used to target a digital currency provider. “Cybercrime poses one of the greatest threats we face as a country, threatening our national security, our financial security, and our privacy,” Bharara said. “For that reason, we will continue to make cybercrime a significant priority, and continue to not only prosecute cybercriminals, but dismantle the online infrastructures like Liberty Reserve that make widespread cybercrime possible.”

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