Bitcoin Forum

The Liberty Reserve news has gone viral and another one of Mt Gox's accounts in Australia has been seized associated with LR.
http://www.abc.net.au/news/2013-05-29/westpac-in-global-money-laundering-scandal/4720050

This is an indirect attack on Virtual Currencies and is bound to free the Bitcoin economy which is good.
But a lot of good people are getting hurt in the cross-fire and this should stop.

http://timesofindia.indiatimes.com/world/us/US-shuts-down-digital-firm-for-laundering-6bn/articleshow/20321909.cms

Bitcoin in the comments.

Also OkPay is closing down business with exchanges.

Exchanges in US or worldwide?

From all exchanges worldwide. Their bank did not like the amount of volume they are generating.

haha good one. this reminds me one shop. few persons went there to buy some stuff for children charity or something and because it was more than average order salesman refused to sell items because she doesnt wanted to have empty shelves.

So long as there is no bottleneck in International Bank wire transfers to exchanges,it doesn't effect currency inflow or liquidity.
All large fiat transfers use Bankwires.
Okpay, LR and Web money is for small to medium transfers.

There will be liquidity issue for a small period because of dwolla + Technocash + Liberty reserve + okPay + next one as normally big guys use small guys for pump and dump and manipulations. Small guys are now going to have lot of trouble to move money in and out of exchange and they will prefer more local transactions.

Exchanges are going to get some issues now because before this lot of their volume was handled by above partners. As they are not available now most of their transactions will route through bank wire or bank transfers, which will increase in delays. It may also create a new side effect on that bank account which will see influx of new transactions and may result in something bad ( remember Banks do not like big volumes for bitcoin transactions. )

Cheers

dwolla + Technocash + Liberty reserve + okPay : As of now i don't see liquidity problems on Gox.
Neither did the market dip unexpectedly reacting to the news. We see normal volatility.
From India it seems bit tougher coz we need 3rd party services for INR to USD conversion to Gox.
Im personally not changing my trade plans coz of such news as of now. Well see if it has any effects at all in a few days

Let us not underestimate the Indian users on LR.
It is a 13 year old site, I bet you that some ones money was being moved through LR.

The last scam thing caused 18 suicides. Let us see what this one does. :)

Or was the last scam caused by the investigation that led to the close of LR?

This is actually bullish news for bitcoin :)

Also you will see effect more on BTC e in coming days. As BTC E was hugely dependent on LR and OkPay.

Cheers

yeah, that quite interesting,  stock market would def crash after such news. bitcoins quite useful for everything what they hate and trying to oppress.

first they planting vulnerabilities into their software, suppose nobody will notice. Later their banks got robbed, so lets go and size Mtgox's  accounts. How stupid is it. Dont plant holes into software in first place.

A view: Trading high 6 figures of fiat (and those guys, together with the 7 figures players are the market makers, and not the Dwolla/LR users)

That's true and Probably soon cash/bank/trade will be the only option to buy bitcoins.

Peoples don't want to use Paypal/Payza etc due to their currency exchange restrictions, chargeback and fraud payments.

LR with 1.4  bil in 12 mil transactions per year was not a small player at all. 6 bil in transactions per last 5 years.

yeah and 6bil is  just US govt's claim. It could be more than that.

I think bitcion exchanges may adopt similar structure which been used by LR, working trough proxies, when all transactions in and out will be going via third party small exchangers, with no direct deposits to main Exchange account. That was the case with Mtgox Dwola account, but mistake was that this account was opened on name of MtGox CEO.

adopting network kind of structure and decentralizing.

any way, were these money will go now. we may expect btc rate growing quite a bit.

Really..? Did you confirm by way of News Post / Press Release..
So much for waiting weeks to get verified..!! Damn.!

their problem was that they solely depended on banks for transactions. With bitcoins it is totally different. For example Mtgox can set up proxies and all transaction between Mtgox and proxies will be in btc. That will be much more complex structure with untraceable transactions. In which case mtgox will be arbitrating transactions in btc between affiliates. Mtgox even no need bank account in such case.

"LR with 1.4  bil"
1.How much of that was BTC money?
2.What %share of total fiat inflow wrt to total Capital of BTC came via LR determines if its Large or Small.

If you compare it, don't compare it with bitcoins current stats/price, do it with last years price.

if you accept that average price of btc during these 5 months in which transactions occur was 17 usd then 1.4 bil usd will be 82 352 941 btc