The developer of the trading bot is suspected of organizing a crypto pyramid for $ 1 billion
The Spanish trading software company Arbicorp has suspended its trading bot. Its users were over 32,000 clients who are now unable to withdraw money.
The Arbistar 2.0 bot promised a daily return of 1% on bitcoin trading, subject to a minimum investment of € 3,000. Also, program participants were offered to receive additional payments for attracting new investors and re-invest profits.
As noted by the analytical firm Tulip Research, Arbistar has clear signs of a pyramid scheme, and the damage from its activities is estimated at $ 1 billion..
On September 12, the organizers of the scheme reported that an error was found in the bot configuration, which led to the fact that users earned more than they should have. Payments were stopped under this pretext.
“You can no longer withdraw funds from the platform. All accounts were frozen without the possibility of reinvestment. Payments for September 12 were also not posted. Over the past year, the clients of our bot have earned more than they actually did on bitcoin arbitrage, ”the message says..
The company claims that it still intends to pay off customers, and rejects charges of organizing a pyramid scheme. At the same time, she notes that she will not pay money to those who decide to report her to the police..
One of the victims, named Manuel, told the local newspaper El Diario that he had invested 0.7 BTC in Arbistar, or about 7,000 euros at the exchange rate at the time. “Why am I in such trouble? Today in Spain it is impossible to have a family or buy an apartment. I work in Dublin. I have money left, and I thought, “I’m investing it. Then maybe I can buy a house tomorrow, ”he added.
Payment startup Wyre has acquired Bitcoin smart contract developer Hedgy Crypto payment startup Wyre has acquired Hedgy, a company that deals with…
The organizers of the financial pyramid, promising to invest clients’ funds in bitcoin, arrested in South Korea Several residents of the South Korean province…
PayPal CEO Dan Shulman: It’s Time For Cryptocurrencies To Go Mainstream PayPal CEO and President Dan Shulman Wednesday…