• Sweden edition
 
Swedish raid in 'record' Liberty Reserve probe

Swedish raid in 'record' Liberty Reserve probe

Published: 30 May 2013 14:54 GMT+02:00
Updated: 30 May 2013 14:54 GMT+02:00

"I'm the one who's authorized the raid," district prosecutor Ylva Johansson at the International Prosecution office confirmed for The Local.

"We don't have any information on the actual confiscated material as it's an American investigation, not a Swedish one."

The raid was carried out in the Stockholm area last Friday, resulting in the confiscation of a number of servers suspected of playing a role in moving billions of dollars in digital currency around the world.

A Swedish man admitted that he had served as a middle-man in Liberty Reserve's network for three years.

"It was obviously a system that could be used for money laundering," the man, who wished to remain anonymous, told the Dagens Nyheter (DN) newspaper.

Prosecutors in the United States unsealed an indictment on Tuesday, alleging the operators of Liberty Reserve were behind a $6-billion criminal money laundering scheme US authorities labelled "the largest international money laundering prosecution in history".

"As alleged, the only liberty that Liberty Reserve gave many of its users was the freedom to commit crimes – the coin of its realm was anonymity, and it became a popular hub for fraudsters, hackers, and traffickers," US Attorney Preet Bharara said in a statement.

Founded in Costa Rica in 2006, Liberty Reserve ran a digital currency trading system that boasted over one million users who could transfer money by submitting only a name, e-mail address, and birth date.

Deposits could also be made via third-parties using credit cards, with the deposits then "converted" to Liberty Reserve Dollars or Liberty Reserve Euros, virtual currencies with values tied to actual US dollars or euros.

"Liberty Reserve operated, on an enormous scale, a digital currency system designed to provide cyber and other criminals with a way to launder their profits without leaving a trace," Acting US Assistant Attorney General Mythili Raman said in a statement.

"The company’s very purpose was to launder its users’ criminal proceeds through the US and global financial system."

The Swedish man explained to DN that he handled money transfer requests online from his home and that the most common clients were people who wanted to transfer small sums of money abroad as part of fraudulent Ponzi schemes.

"They were regular Svenssons who wanted to be rich," he explained, adding that Swedes were able to deposit money in his bank account and that he earned a commission for using their money to buy Liberty Reserve digital currency.

The man has previously been investigated by Swedish tax authorities for his virtual currency exchange operations, which have since been shut down.

He admitted to DN that he "knew full well" that Liberty Reserve's service was used for money laundering.

Sanna Håkansson/David Landes

Follow The Local on Twitter

Your comments about this article

Today's headlines
Elections 2014
Reinfeldt in US for first post-election speech
Fredrik Reinfeldt after a previous meeting in the US. Photo: TT

Reinfeldt in US for first post-election speech

Outgoing Swedish Prime Minister Fredrik Reinfeldt is at a UN climate summit in New York where he is making his first public appearance since election night. READ  

Elections 2014
Loophole lets neo-Nazis onto Swedish councils
Members of the Party of the Swedes march in central Stockholm in August 2014. Photo: Maja Suslin/TT

Loophole lets neo-Nazis onto Swedish councils

Two neo-Nazis who received only a handful of votes have won seats on Swedish councils thanks to a kink in the country’s election laws. READ  

Assange extradition battle
Sweden pours doubt on Assange extradition
Julian Assange is currently living inside the Ecuadorian Embassy in London. Photo: TT

Sweden pours doubt on Assange extradition

Swedish prosecutors said it was "far-fetched" to think that fugitive Wikileaks founder Julian Assange could be extradited to the United States if he returned to Sweden, in a statement released on Tuesday. READ  

Police drop case of thief caught on camera
Happier times at Park Lane: Charles Simonyi and Lisa Persdotter celebrate thier wedding in 2008. Photo: Björn Larsson Rosvall/Scanpix

Police drop case of thief caught on camera

Damning video evidence and an apology from an alleged thief’s daughter were not enough to convince police that a well-known criminal had stolen hundreds of thousands of kronor worth of equipment from one of Gothenburg’s most popular night spots. READ  

Opinion
Sweden 'missed' global opportunities
Sweden's outgoing Foreign Minister Carl Bildt. Photo: TT

Sweden 'missed' global opportunities

As Stefan Löfven attempts to form a coalition government, Social Democrat MEP Jytte Guteland says her party needs to focus on Sweden's international image. READ  

National
Politics 'most shared' topic in Sweden
Photo: Shutterstock

Politics 'most shared' topic in Sweden

Swedes are more likely to share posts or articles on politics than on any other issues, according to a new report from Mid Sweden University. READ  

National
Fears schoolboy murdered in Sweden
Photo: TT

Fears schoolboy murdered in Sweden

Police in Halmstad say the results of forensic tests suggest a 16-year-old boy found dead in a creek was murdered. READ  

National
Elk hunters risk injury in Sweden’s woods
Hunter Ingela Olsson loads her rifle at sunrise in Norrbölla, northern Sweden. File photo: Gunnar Lundmark/SvD/Scanpix

Elk hunters risk injury in Sweden’s woods

Sweden’s vast annual elk hunt spells danger not just for the majestic animals but also for hunters, with crumbling towers and over-tiredness just two of the season’s perils. READ  

Malmö
Rat invasion closes Malmö preschool
Rats like this one have been found in a kindergarten. Photo: TT

Rat invasion closes Malmö preschool

Children in central Malmö are staying at home on Tuesday after a rat infestation was discovered at their kindergarten. READ  

National
Sweden's benefit agency site restored
Photo: TT

Sweden's benefit agency site restored

UPDATED: Sweden's Social Insurance Agency website is working again after being out of action since Monday. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
Property of the week - Torslanda
Finest
Gallery
People-watching: September 20th
The 'black gold' of Sweden's west coast.
National
West Sweden prepares for the 2014 lobster premiere
Society
What's on in Sweden
Politics
How Sweden Democrats went mainstream
Blog updates

22 September

Welcome National Geographic! (Stockholm in my American Heart) »

"What comes to mind when you think of the “The Arctic”? Crystal-encased cliffs jutting from the sea, baronial Polar bears scavenging over sheets of cracked ice or a lone explorer heading north into the night. The image my mind invokes is of three sparkling green lines splashed across the sky like graffiti— the Aurora Borealis— our..." READ »

 

19 September

Editor’s blog (The Local Sweden) »

"Happy Friday readers! It sure has been a exciting week in Sweden, where we’re set to get a new Prime Minister after Fredrik Reinfeldt stepped down following Sunday’s elections. The Local blogged live from the key political gatherings across Stockholm. Why not re-visit the action by taking a look at our photos, tweets, videos and analysis? Since the..." READ »

 
 
 
Politics
Scandinavia and Scotland: closer links?
Gallery
Property of the week - Eskilstuna
Sponsored Article
How to start a business in Stockholm
Society
How I became a surf blogger when I moved to Sweden
Gallery
People-watching: September 13th
Society
Why is Stockholm's Södermalm so cool?
Gallery
People-watching: September 11th
Gallery
People-watching: September 13th
Politics
Five possible election outcomes
Politics
Sweden elections: How do they work?
Politics
Sweden elections: Who's who?
Gallery
Property of the week - Hornstull, Stockholm
Analysis
Five differences between the UK and Sweden
Welshman Jonny Luck is now a chef in Sweden
Society
How I opened my own restaurant in Sweden's Malmö
Sponsored Article
Stockholm tech fest: relive the magic
Gallery
People-watching September 8th
Photo: TT
Politics
Feminists fight for first seats
Politics
Immigration cut push from Sweden Democrats
Sheryl Sandberg says women have "low expectations"
Tech
Facebook exec talks women's limits in Swedish business
Politics
Left Party calls for justice and equality
Sponsored Article
Introducing… Insurance in Stockholm
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

858
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN