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Collapse of Liberty Reserve Hits Heavy on Wallets of Forex Traders


 

Due to scandalous closure of one of the leading world electronic payment systems Liberty Reserve Forex market has experienced a tsunami of negative consequences. Thus, many brokers have imposed limitations on output of the means that had been input via Liberty Reserve.

Motivation of such actions remains the same: loss of capital in Liberty Reserve. Why does none of the companies understand or want to understand that clients should not suffer, as payment problems are not related to them. What is more, brokers would claim that they have numerous systems of money input-output, which guarantees quick and full-scale performance of a transaction under any conditions. In other words, if something happens to one of the payment systems, the problem will be automatically resolved by means of others.

Unfortunately, collapse of Liberty Reserve system has resulted of non-fulfillment of obligations by many brokers. For some DCs closure of Ukrainian offspring became the opportunity of easy pickings – limitations on money output appeared like snow in winter: some ban daily output of over 100 dollars, others ban outputting over 50 percent, and yet others do not give an opportunity to output over 1 000 dollars per month. Cyprus , which has experienced something similar, comes to one’s mind…
 
Few Facts about Liberty Reserve
 
“Electronic payment system Liberty Reserve was founded in 2002 in Costa Rica by a Ukrainian immigrant Arthur Budovkyi-Belanchuk,” , “prior to closure Liberty Reserve used to be the largest anonymous EPY worldwide, having changed such brands as eBullion, e-Gold, and others. For the past five years turnover of Liberty Reserve has amounted to billions of US dollars.”

Owing to the reputation of loyalty to its users, which guarantees anonymity of accounts, low interest for money transfer, and support of exchangers, Liberty Reserve often serviced shady business (pyramids, payments between criminal structures, money laundering, etc.). All this could not be left without attention of FBI and US Department of Justice, whose representatives considered Liberty Reserve to be the instrument for hiding taxes and effecting deals that are against US legislation.

Liberty Reserve has recently blocked electronic wallets of its users without any reason. On March 29, 2013 the Supreme Court of Costa Rica decided to liquidate Liberty Reserve S.A. At the same time, it has been reported about searches in Costa Rica offices of the company and arrest of Arthur Budovskyi-Belanchuk. By the way, the latter has been effected at the presence of Prosecutor General of Costa Rica, as well as FBI and Interpol agents.

Therefore, seven employees of Liberty Reserve, including its founders, will soon face trial. If their guilt is proved, each of them will be sentenced to up to 25 years of imprisonment.
 
Impact of Liberty Reserve Closure on Forex
Except loss made to final users, consequences of scandalous closure of Liberty Reserve have influenced financial markets. Mass cash outflow from similar payment systems has resulted in other players quitting the business. For example, a popular electronic payment system PerfectMoney has announced about its quitting work with US citizens.

The problem of Liberty Reserve liquidation has also touched Forex market. Many brokers, both in Russia and abroad, have stopped performing financial obligations before their clients, referring to loss on capital in Liberty Reserve. In fact, which is rather evident, DC could not have any loss of capital, for such companies prefer keeping their money at banks, usually in off-shore zones. Clients that used to replenish accounts via Liberty Reserve, though, have really faced difficulties, as DCs have imposed limitations on money output. However, collapse of EPS was supposed to have no impact on traders’ transactions.

At the same time, brokers that have limited money output of their clients keep saying “your means are in full safety”. How can one believe this if his money is not received in full? It is worth mentioning, though, that not all brokers do so. For example, large-scale international companies, which value their reputation and act in favour of their clients, keep outputting traders’ means in full volume.

Among such brokers there may be found one of the world leaders at financial markets FBS company, which provides high-quality service to every client, including money input-output and transfer of money means. Moreover, the company keeps replenishing its clients’ trading accounts by its own means, thus enabling them to trade without investment of personal means. For more details see article “FBS: Forex Trade Without Starting Deposit”.
“Market Leader” correspondent has met FBS representative in order to find out if the situation with Liberty Reserve will have impact on the company’s activity and why many DCs have imposed limitations on payments to their clients whereas FBS keeps outputting traders’ means in full.

 

There are no Insurmountable Obstacles when One Works for Clients
 

Market Leader”: - Hello. As far as you certainly know, situation with Liberty Reserve has made a stir worldwide by having touched traders’ interests. Do your clients have a reason to worry about possible problems with output of money that they have input via Liberty Reserve?
Anna Zamurakina, PR-manager of FBS company: - The means of FBS’s clients are in full safety, for they are kept on segregated bank accounts, and no failures in operation of payment systems may influence their safety.

“Market Leader”: - In your opinion, why have many brokers imposed limitations on payments to traders: is this the guilt of Liberty Reserve?
Anna Zamurakina, PR-manager of FBS company: - Due to collapse of Liberty Reserve payment system many brokers have certainly suffered losses: some more, some less. Brokers that limit money output of their clients may be using this as loss compensation. At the same time, such companies may have used this situation as an opportunity to make profit from their clients, thus pretending collapse of Liberty Reserve to be the reason. All clients’ means are to be kept on segregated bank accounts. Situation with Liberty Reserve or any other electronic payment system is not supposed to have impact on money of honest clients. Taking all this into consideration, there arise many questions to brokers and their honesty. Without its own will, Liberty Reserve has brought brokers to light.

“Market Leader”: - Please, tell us about the benefits of your clients when performing financial transactions.
Anna Zamurakina, PR-manager of FBS company: - Clients of FBS are provided with a wide choice of money input-output means. We have organized our work in such a way that every trader from anywhere around the globe could effect financial transactions in most convenient way. Every trader that replenishes an account in FBS company is provided with a 30-percent bonus for every deposit. Our clients are provided with a unique opportunity to indemnify their deposit from loss.

“Market Leader”: - How safe and reliable are balance transactions of your clients?
Anna Zamurakina, PR-manager of FBS company: - They are absolutely safe and reliable. Situation with Liberty Reserve is the main proof of this. FBS company always works in favour of its clients: therefore, we give traders and partners no reason to doubt about safety of their means.

“Market Leader”: - Every new client receives 5 dollars to his trading account. Will incident with Liberty Reserve influence this unique offer?
Anna Zamurakina, PR-manager of FBS company: - The offer keeps working in the set mode: every client that opens an account in FBS is granted with a 5-percent bonus to a trading account.

 

 

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