Topic: LibertyReserve mass account blocking (Read 8365 times)

The reports from http://www.talkgold.com/forum/r366628-.html are inconclusive.

Anyone knows more about the LR situation at this point ?

03/09/2012. LibertyReserve Scam Warning and Daily News from the Industry

http://money-news-online.com/blog/2012/09/03/03092012-libertyreserve-scam-warning-and-daily-news-from-the-industry/?drgn=2

E-gold was more like Liberty Reserve. Liberty Reserve is now down for maintenance after reports from people getting locked out of their high-value accounts.

This will be an interesting few weeks. Here's what I hope to see:

✔ LR will be gone.
✔ Pirate will be gone.
☑ Bitcoin will remain standing.

we opened the faucet! I guess a lot of people were waiting to unload LR and load BTC.

still down

Now back up. 

Whooah!!!!

As the web site appears shortly, you will discover Credit Card Funding option (available ONLY to a verified users),

Dear friends, it has come to our attention that some of our customers became concerned with our latest maintenance continuation and erroneous account status change for a group of our clients. Please find below an official explanation of reasons behind both instances:

1. There is a group of blocked accounts which were erroneously blocked by an automated script that was tested in the beginning of August and apparently has failed to perform properly. Script was designed to automatically secure in account in the event of multiple suspicious login attempts. During this maintenance we have identified the problem, addressed it and it is now being solved.

2. Since we were forced to perform extended maintenance, we saw an opportunity to add some of the additional features that were pending to be added to the website. As the web site appears shortly, you will discover Credit Card Funding option (available ONLY to a verified users), along with other minor improvements and enhancements.

We sincerely apologize for any inconvenience this maintenance may have brought to you and would like to assure you that both issues are addressed in a timely manner and currently being worked on around the clock for the quickest and safest resolution. During this final stage of maintenance we are identifying erroneously blocked accounts and updating their statuses to "normal". This is a long and tedious process so your patience is appreciated. While we are doing everything possible to bring the system back faster, these processes make take an additional up to 2-4 days to complete.

Any other explanation of this maintenance that you may come across online in various online forums is inaccurate or simply put - false and misleading.

The timing here is very suspicious, coming right after a peak in BTC price. That suggests other e-currencies were chasing BTC, a run which may have broken the LR bank.

Hard to say.  LR charged enough fees to warrant them continuing operation vs trying to steal the money.  Why would you steal all the money and risk jail etc when all you would have to do is wait 100 days for the same amount to come in fees. 

Something else is going on.... a hack..... government intervention..... who knows??

It wouldn't surprise me if we just saw the last breath of LR. There was always the suspicion that it was a fractional operation. That the operators doubled as exchangers able to give themselves unlimited LR dollars, which they sold for Western Union payments or whatever. Such a scheme would collapse if the net-flow turned negative (like a ponzi).

The timing here is very suspicious, coming right after a peak in BTC price. That suggests other e-currencies were chasing BTC, a run which may have broken the LR bank.