Not all Forex scams are the same. Sometimes traders lose their money due to indirect scams. Shady business practices (or the lack of necessary transparency and AML compliance, however you call it) adopted by Liberty Reserve have resulted in a loss of funds for many traders. The payment system was quite popular in the online FX industry with more than a third of all brokers listed on our website supporting it. Those who were using it for trading account funding would probably have some balance sitting in LR (either profit withdrawn or some funds ready to be deposited). Now, the money is gone and it is not due to brokers’ fault, it is due to criminal activity of the payment processor.
Of course, Liberty Reserve was not the first payment system to go defunct.
I was fortunate enough to hold only about $0.09 in my LR account when the website had been shut down on May 24, but I am not sure that other traders have been as lucky as I was. So, today’s question is — has your trading ever been influenced by a payment system shutdown, be it current Liberty Reserve issue, or something from the earlier times?
By the way: as of April 2010 about 10% of this blog’s visitors were using Liberty Reserve as their preferred method of deposit/withdrawal in Forex.
If you would like to share your opinion on Liberty Reserve incident or give us more details about your past negative experience with some payment system, please feel free to do so using the form below.