We're watching the pain of those caught up by the demise of Liberty Reserve with some interest.
It's worth noting that companies like Ukash allow transactions very similar to those facilitated by Liberty Reserve. As we have seen with piracy sites, where the is a willingness to dabble with illegal activity there is also a lack of accountability when it comes to addressing the problem of child exploitation material and other illegal content.
We find that most illegal file lockers have a child pornography content problem, we also know that the grey market financial systems also have similar problems. We have detected issues with Ukash, OKPay, Webmoney and other similar systems.
As for the demise of Liberty Reserve , it's interesting watching the unfolding despair and denial of the pirate webmaster community as they grapple with yet another affront to their criminal activities.
http://www.wjunction.com/14-news-cur...-arrested.html
http://www.wjunction.com/14-news-cur...will-back.html
Reading Krebbs take on the issue places the denial of reality by WJunction members into sharp relief.
http://krebsonsecurity.com/2013/05/r...ite-shuttered/