Liberty Reserve was a private currency exchange system issued by Liberty Reserve S.A. of San José, Costa Rica. As of May 27th, 2013 it is offline following the arrest of its founder.
The two Liberty Reserve currencies are Liberty Reserve USD (LRUSD) and Liberty Reserve EURO (LREUR). Liberty Reserve S.A.'s terms of service reads:
- 1.7. Liberty Reserve (LR): means the digital currency in which the electronic transfer services are provided; backed by United States of America Dollars and Euros; hereinafter for all legal purposes referred to as LR. [emphasis added]
Liberty Reserve was a digital currency used frequently for adding funds to and withdrawing funds from Bitcoin exchange markets.