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Investors Lose 120,000 BTC Because of Error in Trading Bot

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Investors Lose 120,000 BTC Because of Error in Trading Bot

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Arbicorp, a Spain-based trading software development company, recently stopped its trading bot activities. The decision affected more than 32,000 customers who had once deposited their money on the platform but can no longer withdraw it.

The Arbistar 2.0 trading robot offered a daily return of 1% for anyone willing to invest at least 3,000 euros ($3,500). It also offered bonuses to subscribers who receive new referrals.

However, as with any pyramid scheme, the breaking point has been reached. According to the company, an error in its trading bot has caused customers’ revenues to be above what they should be. However, the sudden pause and losses to new investors are all characteristics of a pyramid scheme.

The company announced that it will no longer be possible to make donations from the platform. Also, all accounts will be frozen and no reinvestment will be possible. They further explained that winnings from Saturday, September 12th were not paid out and all withdrawals were stopped. 

Research firm Tulip Research estimates that investor losses will still be around $1 billion. However, an official estimate has not yet been released:

However, the company promised to pay all investors and insisted that its trading robot was a reliable product, not a Ponzi scheme – although a press release announced that they would not pay anyone who dared to take legal action.

Massive Returns from Trading Bot are Always Risky

These scams are rampant in the crypto ecosystem, but there are always prudent people willing to take risks. The promise of quick profits and high returns is often too enticing for victims to think twice.

In fact, in early 2020, the Better Business Bureau ranked cryptocurrency the second industry with the highest risk in history. 32% of fraud cases involve cryptocurrency purchases, 23.4% of investment opportunities are related to digital assets. In addition, d 31% related to C2CXr shady transactions in China.

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