Researchers warn that the supposed scheme can have swindled billions. A crypto trading bot developer, the team behind Arbistar, announced that it would be shutting down a popular trading tool know as Community Bot.
Arbicorp is the company that runs Arbistar. So, according to a press release published by Arbicorp, the platform is not currently allowing deposits. Preventing users from withdrawing their money, all funds have been frozen. Users can not access crypto from funds that trade with other bots.
Tulip Research is a financial forensic firm. Thus, it led the firm to warn users that Arbicorp is a billion-dollar crypto Ponzi scheme. It is a claim they say they have made ‘many times.’
Arbistar used BTCPayServer for the last year to take advantage of the PayJoin functionality to hide the money trail. It was possible to trace without problem the different movements that the company made with the incoming capital before its implementation. Different addresses can be related to a single organization by applying heuristic methods.
Tulip checked the address pool before preceding the BTCPayServer. They considered that they had linked the final addresses with the old ones. Thus, Tulip states that they could check the amount of BTC (Bitcoin) that entered the accounts of Arbistar.
An error in the Profits’ configuration made the figure obtained in the exchanges (markets) with the community bot (Arbitration Bot) way lower than what is detailed on the platform. Thus, they have been producing higher profits on the platform for almost one year than was achieved in the markets.
Arbistar CEO Santi Fuentes published a video on Youtube. So, there he said that the company wants to return the funds to customers. It will happen with daily payments starting on September 15.
However, Arbistar warned that they ‘will block the funds’ pending a judicial resolution, if users decide to take legal action against the company.