The Arbistar team, the developer of the cryptocurrency robot, has announced that it will shut down the popular trading tool known as the Community Bot.

According to a press release published by Arbicorp, the company that runs Arbistar, the platform does not currently allow deposits. All funds are frozen, which prevents users from withdrawing their funds. Users cannot even access cryptocurrencies from money that trades with other robots.

This led forensic firm Tulip Research to warn users that Arbicorp is in fact a multi-billion dollar Ponzi scheme – an allegation they say they made “time and time again”:

“Arbistar has been using BTCPayServer over the past year, using the PayJoin function to mask funds. Before implementation, it was easy to track the different movements of the company along with the flow of capital. By using heuristic methods, you could link different addresses to the same organization.”

After verifying the address pool in front of BTCPayServer and considering that they linked the end addresses to the old ones, Tulip Research stated that they were able to verify the amount of Bitcoin (BTC) received in Airbistar accounts.

Cointelegraph Spanish reported that the Community Bot paid out 28% of its actual earnings over 46 weeks. According to the directors, this created a “loophole” in the bot’s accounts. Arbistar said:

“At that time, a profit formation error caused that the figure obtained in the markets (exchange) by the Arbitration Bot is WAY DOWN than what is already mentioned on the platform. Thus, we have succeeded in making higher profits on the platform since Nearly a year now than the markets have already achieved. ”

In a video posted to YouTube, Arbistar CEO Santi Fuentes said the company intends to return the money to customers in daily payments starting September 15th.

However, Arbistar cautioned that if users choose to file a lawsuit against the company, they will “withhold the funds” pending the court’s decision.

Source: CoinTelegraph

LEAVE A REPLY