The cryptocurrency company Arbistar, based in the south of Tenerife, has generated, according to RTVC, losses of around 1 billion euros. Apparently, its arbitration system allegedly failed due to mismanagement, although the causes are not yet clear, there are many questions as to a possible pyramid scheme.
The person in charge of the company, Santi FuentesNow unaccounted for, he went out every Wednesday explaining how the company was doing, but mismanagement caused the Community Bot, one of its products, to fall. It is an arbitrage bot, a computer process that was in charge of buying low and selling high automatically, offering great returns.
They offered their investors a high return, and the money that was reinvested each month multiplied rapidly, although when they claimed it lately they could not receive it. The company is now in the spotlight for a possible ‘exit scam’, that is, for an exit scam, according to Televisión Canaria. Those affected by Arbistar organize to sue for scam and fraud.