A Spain based crypto Ponzi scheme, Arbicorp abruptly froze accounts of more 120,000 investors on September 12, after the discovery of an error that causes one of its cryptocurrency trading bots to overpay. Arbicorp claims that the error, which went unnoticed for almost a year, led to its trading bot called Community Bot, to pay 28% more in profits than were due.
Interestingly, despite incurring severe financial losses, Arbicorp management said they still went ahead with the overpayments for more than a month. However, Arbicorp assures investors in a statement that “no one will lose” and management even suggests that aggrieved investors that want to take legal action “can proceed.”
Yet in the same statement, the organisation reminds such investors of the terms and conditions of the investment agreement they signed. Part of the terms state:
“The client accepts that the use of our website or service is at own risk and responsibility. The client agrees that the said service is provided as explained depending on availability. The company does not guarantee that the service will be uninterrupted, safe or error-free; nor does it guarantee the results.”
Consequently, Arbicorp warns investors that choose the legal route that “we will hold your payments until the judicial resolution” has been made.
Meanwhile, despite suffering this setback, Arbicorp management appears keen on getting some of the affected clients to continue investing with the company. The management reminds investors:
We remind everyone that Arbistar 2.0 still has 4 bots of Forex, 1 commodities bot, shortly one of crypto trading and the Personal Bot Pro of Cryptocurrency Arbitrage THAT ONLY KNOWS TO WIN and that in a few weeks it will enter phase 2 to 5,000 euros per year.
Immediately after the announcement, some Arbicorp investors took their complaints to Twitter. Replying to the announcement, an investor Diana Ruiz asks:
“Good afternoon, I want you to explain to me and I think we have that right to know what will happen with our investment, we are a family of brothers who invest all our capital in your company and we fully trust you, please we want the truth.”
Another investor, Jamerson Andres said:
“As for me, I have an account for a year from which I have not withdrawn much and at this moment when I look at it I see a lower investment than the initial one.”
Meanwhile, Arbicorp asks investors seeking any information on the closing and liquidation of community bot accounts to reach out.
Do you think Arbicorp will reimburse all investors? Tell us what you think in the comments section below.
The post A Spain Based Crypto Ponzi Scheme Abruptly Freezes Accounts of 120,000 Investors appeared first on Bitcoin News.
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