If people bring an action against Liberty Reserve what will be in future?

This question interests everyone who is linked somehow with Liberty Reserve payment system the breach of which has become a hot topic discussed by all Internet communities. People are still in the dark and wonder “if even the exchangers have been robbed what will be with the funds of common users of Liberty Reserve". The life doesn’t stand still and it makes sense to think of the future of LR.

What will be with traffic? 

First of all let’s turn to Alexa website to learn about the statistics on libertyreserve.com. The chart shows that traffic decreases, thus people leave LR not wishing to forgive this payment system for all its fraudulent operations and weekly maintenances. 

Analyzing the site we see the following structure of LR’s traffic:
Indonesia 18.8%
United States 17.5%
Nigeria 11.4%

A great number of users from Indonesia can be explained easily: Indonesia is one of the largest suppliers of the Internet users who focus on HYIP industry. Well, according to some sources Liberty Reserve has locked a number of accounts in many HYIPs, so we may expect that very soon this community will leave Liberty Reserve in view of uncertainty of this payment processor and its unreliability for HYIPs. 

A bunch of Internet users coming from the USA can be explained by a high Internet penetration and active participation of the US residents in e-commerce. 

As for the users coming from Nigeria, here we may say that they do not credit the traffic of LR. Nigerian fraudsters are famous around the world for their scaled operations throughout the Internet including the ones involving Liberty Reserve as a payment system. Thus if Liberty Reserve does not disappear in the nearest time, the percentage of the Nigerian traffic will continue to grow.

What will be with deposits in Liberty Reserve? 

Here Liberty Reserve has found a good and convenient option – depositing with plastic cards, which however may result in a tragedy for LR where the leading part will be played by carders. Even verifications of Liberty Reserve will hardly save the situation: shill will not only allow the carders to put their business on a wide scale but also will finally turn Liberty Reserve into a breeding-ground for financial fraudsters on the Internet.

What will be with withdrawals from Liberty Reserve? 

Have you ever thought of the reasons that led to the crash of e-gold? Certainly, that law suit became a determinant in that situation though here we should admit that even a year before that suit started the situation was critical due to the worsening liquidity of e-gold. Will the same thing happen to LR? But for the money we could say that LR even does not exist. The company that does not allow its clients to make withdrawals with bank transfers has no future. Hence, from the economic point of view the rate of LR will constantly fall. Though here we admit that some ups are also possible, though their fluctuation range will be too short. Day by day trust of the exchangers will melt down, and since it is the exchangers that determine the rate, the system itself will fall into the abyss. LR has pegged its rate to the exchange services having enabled them to determine it. And it means that now any negative news about the system crushes the system and drives it into the corner by the exchangers themselves. And surely, LR realizes that since immediately after being hacked it has re-launched its trade association of exchangers GDCA. Though here we should admit that this concept has no future since the reputation of tarnished forever plus the fact that a great number of exchangers in that association controlled by LR injures the pride of the independent exchangers which do not want to join a fraudulent cartel of Liberty Reserve.

The only trump card in the situation with exchangers is a macroeconomic situation on the market of electronic currencies. In other words, exchange services do not want to refuse operations with Liberty Reserve in view of big turnovers they have with this e-currency. However, even that fears pass after seeing some other exchangers robbed, and here comes the idea that it is better to stop working with LR voluntarily than to be robbed. The exchangers that have a good income from the business on LR now do all their best to withstand the crush of Liberty Reserve liquidity. Though we should admit that the demand for LR is not as strong as it was before and today we see just a false stability of LR rate. In other words people think that the rate stopped dropping but in fact it is just artificially kept by the exchangers which simply do not understand that they will hardly gain any profits on Liberty Reserve, and in light of the repeated hacks of Liberty Reserve it would be better for them to get rid off this e-currency and find another alternative. 

What will be with Liberty Reserve?

We receive a lot of messages from our readers where they tell us their stories and the stories about their acquaintances who have lost their money with LR. In their messages people are strongly opposed to LR and do not want to forget about that accident. Many of them gathered in groups and have addressed Costa Rican lawyers to bring action against Liberty Reserve. Thus very soon we will see a court proceeding in Costa Rica and LR will hardly escape the trial. What will LR do in that situation? Yes, exactly! They will change the offshore zone and transfer all their funds from one offshore bank to another. So, probably very soon Liberty Reserve won’t be a Costa Rican company. Though, if those who fall victims of LR have long arms, another offshore zone will hardly host Liberty Reserve for a long time. Liberty Reserve may be persecuted and then, being tired of all those courts, threats and a dropping liquidity, it will close its site one day having left thousands of Liberty Reserve users with a blank page of LibertyReserve dot com. 

Certainly, today many online users think that Liberty Reserve is just a victim of the attacks initiated by some users and mass media though there are no proofs that business of LR develops stable. The system was hacked, it didn’t work for 6 days after which it has repeated sudden maintenances, and then it went through mass withdrawals and liquidity crash… After all those facts it would be very difficult for Liberty Reserve to go up. Actually it means that those people who exchange Liberty Reserve to other e-currencies today and forget about this payment gateway forever will win.