Researchers say that the supposed scheme might have swindled billions. The team behind Arbistar is a crypto trading bot developer. It said that it would shut down the popular trading tool known as Community Bot.
Arbicorp is the company that runs Arbistar. The platform is not allowing deposits currently, according to a press release published by Arbicorp. Thus, users cannot withdraw their money. All funds have been frozen. It means that users cannot access crypto from funds that trade with other bots.
Tulip Research is a financial forensic firm. It led the firm to warn users that Arbicorp is a billion-dollar crypto Ponzi scheme. They made this claim multiple times.
For the last year, Arbistar used BTCPayServer to take advantage of the PayJoin functionality to hide the money trail. They could track the different movements that the company made with the incoming capital before its implementation. By applying methods of heuristic, separate addresses can be related to a single organization.
Before preceding the BTCPayServer, Tulip checked the address pool. They considered that they had linked the final addresses with the old ones. So, Tulip states that they can check the amount of Bitcoin (BTC) that entered the accounts of Arbicorp.
There was an error in the Profits’ configuration. It made the figure obtained in the exchanges (markets) with the community bot (Arbitration Bot) way lower than what is detailed on the platform. So, they have been producing higher profits on the platform for around one year than was achieved in the markets.
On Youtube, Arbistar CEO Fanti Fuentes published a video. Here he said that the company wills return the funds to customers. This will happen via daily payments starting on September 15.
Nevertheless, Arbicorp will block the funds pending a judicial resolution. It will happen in case users decide to take legal action against the company.