New York - Federal prosecutors have smashed a $6bn international money-laundering scheme based in Costa Rica after a tip-off fingered the 'digital currency' provider.
Southern District of New York legal sources say the sheer scale of the Diabolical Liberty Reserve's operations has irreparably tainted the Central American republic's existing reputation as a dodgy black market hub.
"They should rename it Costa RICO, heheh," NYC attorney-at-law Sammy V Finkleshyster commented in what's thought to be an oblique reference to the Racketeer Influenced and Corrupt Organizations - RICO - Act that's supposed to deal with organized crime scams.
Dozens of international arrests have seen the Reserve described as the financial hub of the cyber-crime world with charges being brought for millions of counts of credit card fraud, ID theft, investment fraud, computer and cell phone hacking, child porn and narcotics trafficking.
Law agencies claim the company processed in excess of 12m financial transactions per annum worth more than $1.4bn during their seven year run involving 45 bank accounts and five domain names.
"It's all been a dreadful misunderstanding," a spokesperson for the Reserve said this morning.
Expect more details to emerge soon.