Fintech founders will be familiar with regulatory obligations relating to money laundering - it's imperative to have a good directors and officers liability policy in place!
Liberty Reserve had advertised itself as the internet's "oldest, safest and most popular payment processor... serving millions all around [the] world". Users had to provide a name, date of birth and an email address - but prosecutors said fake credentials had been accepted. Account holders "converted" their cash into one of the company's digital currencies, following which an "instantaneous" transfer was made and the sum converted back into real-world cash. For this, the company charged up to $2.99 (£1.98) per transaction. The US Justice Department said the scheme had been used to process 78 million transactions with a combined value of $8bn (£5.5bn) - many of which were related to hiding the proceeds of credit card theft, identity fraud, hack attacks and Ponzi scam investment schemes.