Liberty Reverse case: SBV says clients incur dead loss
Liberty Reverse case: SBV says clients incur dead loss
The people, who made transactions with the Liberty Reverse’s in Vietnam, and intermediate payment websites could not withdraw money before the network was collapsed in the US.
A high ranking official of the State Bank of Vietnam said the clients are certain of dead loss since they made transactions with a payment network which was not a legal entity
The legal loophole for electronic money
The collapse of Liberty Reverse has had serious influences to the Vietnamese community. A lot of individuals have reported that they had had several thousands of dollars in their Liberty Reverse’s accounts, but they could not withdraw money before the network was collapse.
However, the biggest sufferers would be the intermediate service providers. LR has become a kind of popular electronic currency which can be traded and converted into other currencies through a series of websites such as Exchangezone.com, Exchangezone.vn, mualr.com.
In general, the websites that provide LR conversion services, keep tens of thousands of dollars in their accounts. This means that when Liberty Reverse shut down suddenly, the websites’ owners would also lose their money completely.
“Exchangers” is understood as the groups of intermediate service providers who help clients convert their money into LR and vice versa. When a man, “A,” for example, wants to convert PP (Paypal’s currency) into LR, and another man, “B”, wants to covert LR into PP, they would contact the exchangers.
The exchangers would, through the websites like exchangezone.com, mualr.com, carry out the transactions. “A” would remit PP to exchangezone.com, and then exchangezone.com would remit PP to “B”.
Though the case is still being investigated by the Ministry of Public Security and the State Bank, it’s now clear that the loss caused to the Vietnamese community is really big.
When asked if any agencies come forward to protect the people to claim back their money, the said official said all the online payment channels that have the relations with LR electronic currency have not registered their operation in Vietnam, which means they were operating illegally.
“It’s highly possible that the people will not get the money back, because there have been not enough proofs and addresses to place the blames.
A case found as relating to Liberty Reverse
Vu Van Lang in Hai Phong City, the subject in the case, set up Thinh Vu JSC in 2008 which acted as the agent of BIDV’s overseas remittance services which pays through Western Union.
However, in fact, the legal entity just aimed to serve Lang’s LR electronic currency trade. He collected LR in Vietnam and then sold for profit. All the transactions were made by Lang via Internet. The clients of Lang, who bought LR, made payment by remitting money to Lang through Western Union whose Thinh Vu is an agent.
Vu Van Lang established a firm headquartered in Hong Kong and set up a website at www.privatechange.com which served the transactions and advertised the LR trade.
He bought LR from exchangers, including Nguyen Dang Khoa and Tran Thuy Huyen Han at www.exchanger.vn, from Nguyen Dinh Bac at www.vietmaker.com and www.mmo4vn.com, from Nguyen Duy Trinh at www.mualr.com... He also bought LR on Chinese www.Ebaygold.com.
The total LR sum of money Lang has bought so far from Vietnam is VND186 billion.
vietnamnet
