The founder of an internet service for funds transfers has been arraigned in United States along with six other people in a money laundering case of an astonishing magnitude, totaling $6 billion, said the authorities on Tuesday.

Arthur Budovsky is the founder of Liberty Reserve, a Web site based in Costa Rica which has been a favorite of internet scammers. He was arrested in Spain on Friday. Another defendant who has been identified as his partner, Vladimir Kats, was remanded in custody in New York.
Authorities said the operation processed at least 55 million illegal transactions globally for one million users, including 200,000 from the United States. They added that it is the biggest case of international money laundering ever seen. ”

Another article, in Nacion.com, notes that the Costa Rican Prosecutor Jose Pablo Gonzalez stated that “investigation began in 2011, when the U.S. authorities called for collaboration, because they knew that there was a company operating in Costa Rica which, apparently, received money from illegal origins.
This was the company Liberty Reserve, which allowed users to open an online account just by supplying a valid email address. Once enrolled, the company Liberty Reserve provided the user with a number of features with which it could make transactions.
The company was founded by Budovsky and closed in 2011 because it could not satisfy the Sugef regarding the legitimacy of its operations, said the prosecutor Gonzalez.
However, Budovsky continued operating using five companies called Silverhand Solutions & Technology S. A, Worldwide E-Commerce Business S .A. (Websa), Grupo Lulu Limitada, Triton Group A & A, S. A. y Cyberfuel.com, reported the prosecutors office.

Here is a great discussion from the BBC on Liberty Reserve.  Click on the picture to hear the discussion.