LR just provided the ledger, you bought in and cashed out through 3rd party exchangers who were supposed to do all the KYC checking. LR also would freeze any account that moved more than some arbitrary amount that I can't remember but you could open pretty much unlimited accounts with slightly different info to keep under the limits. They weren't as bad as the DoJ claims unless there was private side dealing they discovered.

When the exchangers started allowing Visa/MC ATM card loads is when all the org crime flocked to LR to cash out their stolen db sales and attention from DoJ started.