SAN JOSE, Costa Rica – Costa Rican authorities say the founder of the Liberty Reserve digital currency business has been arrested in Spain on money-laundering charges.
Officials in the Central American nation say in a statement that Arthur Budovsky was detained as part of an investigation that also involved U.S. authorities.
The statement says that Budovsky was detained Friday and that Costa Rican authorities have raided three homes and five businesses linked to Liberty Reserve. The site was offline Monday.
Authorities say the Costa Rica-based Liberty Reserve shut its offices there in 2011. The website, however, continued to operate.
Investigators say that a Russian citizen was also arrested in the case in Costa Rica on Friday and that he will be extradited to the United States.