Libertyreserve scam - Update

This is in fact an update to say that Libertyreserve didn't reply to any of us about the $110k they allowed to be stolen due to their security breach.

Instead, they are once more offline since about 36 hours, to implement an automatic password change routine! Who will believe it? Such changes are always coded offline, then the new pages and scripts are uploaded, and there is NO downtime.

According to their blog, Libertyreserve is implementing new features to detect "suspicious" moves in an account. That will be just a "legal" (according to LR TOS) way to block large amounts when the Clients will want to SELL LR. So, no large amounts will be allowed to be sold, and the LR will has a no-value. Just like e-gold, there are millions in the system but they STAY in the system.

According to some information, one of the largest LR exchangers is without new since ONE WEEK, after LR ordered them to stop exchanging their e-currency. This exchanger has a few dozens thousands of dollars in LR and can not do anything with them! Paltz from LR replies since one week "we are investigating".

Another "big" exchanger is trying to sell $700,000 (seven hundred thousands!) LR directly to LR to get a bank wire. Guess what? LR didn't send the wire so far, despite the sale order was put last Thursday, and Paltz from LR told the exchanger "I am not sure we will pay you immediately, thank you to be patient".

These $700,000 come of course from Clients who sold their funds to the exchanger, and are now waiting for a bank payment. As LR does not want to pay the exchanger, WHO will be the last loser? The basic LR client who has just lost his money.

A third exchanger is in the same position: Last week he accepted to purchase LR from his Clients, *before* the LR API was disclosed, "before the crisis" so. He received the LR from his Clients and as usual prepared to send their bank transfer the next day.
But the next day, the API bug was revealed and panic began. As this exchanger has probably some inside information from LR, or simply as he is clever enough to understand that things are going really bad, he decided to wait to send the wires. Now, as nobody wants to BUY LR, this exchanger has simply not enough money to send the wires to his clients! He has just a lot of LR that has no value. Result once more: Final LR clients have lost their money.

Currently the trading rates of LR for exchangers that still accept to buy it, are between 8% and 40%. And ask any of them if he will accept a small $5,000. More than probably the reply will be "no".

The "good old e-gold time" is back, with Libertyreserve!

It is Monday morning in Costarica, and I am going to have a phone talk with a high representative of the Ministry of Finances of CR. Considering the current situation I will kindly invite him to make the financial license of Libertyreserve immediately canceled. The reputation of Costarica should not suffer from the activities of a gang of scammers.

The revocation of the financial license will mean the end of LR. That will also mean the loss of $70k for me, and the loss of money for everybody. That will then MAYBE make people decide to sue these criminals to Court. Look at the OSGOLD scam, seven years ago. The scammer has been arrested last month, after seven years being a fugitive. Let's organize so that the same happen for the LR crooks. Hopefully faster, as we have other information and some private initiative should be done to bring these criminals to the Justice. Private investigators work well. And fast.