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ARBITRACOIN, XIN: FMA WARNING TIP OF THE ICEBERG

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How often can you rip off a customer base? At least three times, if you as the operators of ArbiTraCoin. At the end of September 2018, the Austrian Financial Market Authority (FMA) issued an investor warning about ArbitraCoin, thus putting an end to the situation for the time being. Our research revealed that many of the cheated ArbitraCoin owners are also hodling worthless XIN tokens. The search for the backers and those responsible is on.

The Austrian Financial Market Authority (FMA) is currently very active and busy with the crypto industry. On 20 September 2018, it issued an investor warning about ArbiTraCoin. Financial Telegram identified this as a potential fraud case back in July. The FMA says: ArbiTracoin is not entitled to conduct banking transactions requiring a license in Austria. The provider is not permitted to accept third-party funds commercially for administration or as a deposit (§ 1 para 1 no. 1 BWG).

Not really surprising, since even though the website www.arbitracoin.com, which went offline in August (Fintelegram reported), has been put back on with some minor changes, nothing is happening with this coin. According to statements from various distributors, the translation of the website and the wallets (?) are still being worked on in order to address the Russian and US market (can only be a joke!) accordingly. The telegram and Twitter channels of the crypto project have been a communicative desert for months now. The value of ArbiTraCoin is accordingly low or no longer existent:

ArbiTraCoin charts
ArbiTraCoin charts. Someone should call it, given the life line

The ArbiTraCoin is interesting in so far as it is only the last glossy product (as far as we know!) from a crypto MLM system existing since 2015. The following is a brief outline of the history of this long-standing rip-off system.

2015 – Spring 2017: the MyCryptoWorld project

myCryptoWorld Logo
myCryptoWorld Logo

It all started with the MyCryptoWorld project.

The then domains of this project were mycryptoworld.com and mycryptoworld.net (both registered on September 15, 2015) and www.mycryptocoins20.com (registered on November 26, 2016). Meanwhile, none of these websites is accessible anymore.

offline notice for mycryptocoin20
offline notice for mycryptocoin20

It is now difficult to identify the people who were responsible for the network’s ideas at the time, and many of the advertising contributions have since been deleted. Identifiable is the American Thomas Prendergast, an obvious marketing professional who actively marketed MyCryptoCoin in 2016. In the meantime, most MyCryptoCoin contributions have been removed from his website and he is dedicating himself to his new project: Markethive should become the new Facebook! The site Behindmlm.com, which always tries to clarify the situation, stated in an early contribution (Dec. 2016) that MyCryptoWorld is probably a German-US project since according to Alexa the website traffic would come mainly from the USA (37%) and from Germany (32%). The German participation can also be recognized by a German IP address of the domain www.mycryptocoins20.com.

In any case, the project operators were already selling token packages from autumn 2015 (EUR, USD and BTC were accepted as means of payment), whereby the 1 billion MyCryptoCoins sold (tokens of a decentralized and unguided DAO etc.) were not to be issued until January 2017. At the same time, there was a sophisticated commission system for the brokerage of further token buyers; the commissions were not paid out in MyCryptoCoins (MCC) but in Bitcoins. This MyCryptoCoin project was probably one of the first crypto-MLM-ICOs worldwide with a SAFT-like design. Again, who should say that the MLM artists are not the creative avantgarde.

MCC
MCC

Spring 2017: MCC becomes the XIN TOKEN

In January 2017, 9 billion XIN tokens were issued on the Infinity Economics (IE) blockchain; these tokens were distributed to the members of the Crypto MLM system of MyCryptoWorld. The MCC token was no longer mentioned. The Infinity Economics (IE) platform, according to advertising statements, was a completely decentralized, unguided DAO* and completely distributed financial platform, which stands in the OWNERSHIP OF PEOPLE WHICH USE IT. According to some statements on Bitcointalk, IE saw itself as a service provider with a “software platform” on a blockchain basis.

The IE platform was promoted at the beginning of 2017 as the “Swiss knife” among the cryptocurrencies: the IE platform as supposed to create an alternative crypto market access for consumers such as traders, investors, and financial institutions worldwide by creating and offering complete everyday services including a payment system. The extensive additional features (e.g. Smart Contracts, Assets, Digital Goods Store, Distributed Hosting, Rating Agency or Digital Notary) make the platform comparable with an operating system that provides all the tools without appearing overloaded. IE is the world’s most advanced and comprehensive crypto platform of its kind.

In total, the IE is said to have proud 30,000 participants around, with 40,000 XIN wallets and 9 billion issued XIN tokens. In addition to the XIN tokens, the founding members of the IE-DAO also received shares (?) on the IE platform, which could also be traded on the IE platform and entitle the shareholders to a share of the IE platform’s fee income. A little understandable and certainly not at all transparent construct.

The Infinity Economics Forum for the exchange of information and experience (now rather lukewarm) went online in February 2017. The Infinity Economics Coin Exchange website has been online since July 2017. According to various statements, all significant development activities at the blockchain were discontinued as early as spring 2017 – shortly after the token was issued. Only XIN are traded on the Infinity Economics Coin Exchange – with a considerable trading volume. Otherwise, the community managed to get a listing on questionable exchanges such as coingather.com (offline since Nov. 2017) and vobit.net. Coins are also listed on www.coinmarketcap.com, but no market capitalization is currently quoted. The trading volume of the last 24 hours (October 15, 2018, 16.45h), on the other hand, was considerable with more than $36 million, whereby rumor is that this is mainly fake turnover (wash trading). The value of the tokens has dropped massively in recent months and amount to USD 0.00383 as of yesterday.

XINTOKEN
XINTOKEN T

Fenruary 2017: WeGoCrypto shows up

Starting in February 2017, the distribution of a new project was started within the MyCryptoWorld MLM structure with 30,000 members under the project name We Go Crypto. We Go Crypto was introduced as an automatic “get rich in your sleep” arbitrage trading software. Again, a disproportionate bonus system for recruited participants was implemented.

On the website www.wgc-worldwide.com you can find Dennis Novak, Jörg Gehrmann, Daan v. Koelen and Rudi Neidhardt behind the heads of the We Go Crypto MLM system. The website has an IP address in Germany, but according to Domain bigdata, the registrar is located offshore in Panama. The predecessor site www.wgc-network.com also had an IP address in Munich, Bavaria. Novak, Gehrmann, Neidhardt are all well known (and notorious) in MLM circles.

The extent to which this distribution of software packages has worked is not known. In any case, the x-invest forum has warned against this project: the program has been moved to “closed programs” because it has stopped its activity and is either offline, no longer pays out at all or only partially/selectively pays out.

After the SMART ARBITRAGE SOFTWARE product had been more or less successfully sold to the approx. 30,000 investors in 2017, the distributors of the MLM system ignited the last stage of the rip-off rocket and released the ArbitraCoin.

April 2018: Arbitracoin enters the market

ArbiTraCoin
ArbiTraCoin

With ArbiTraCoin the MLM distributors wanted to profit from the ICO hype of the first months in spring 2018. Obviously, there were a few real web marketing professionals, because the Arbitracoin is a glossy project: the website is shimmering.

 

ArbiTraCoin logo
ArbiTraCoin logo

Also with this token, it is possible to get a listing at www.coinmarketcap.com. According to Coinmarketcap 131.901.470 Tokens were sold in the Token Sale. Apart from a lot of high gloss and empty promises, nothing happens with this coin. A coin is now available for USD 0.001317 (starting price was USD 0.3413). However, no market capitalization is currently quoted and the trading volume is virtually non-existent. In our opinion, the ArbitraCoin is an exit scam, i.e. a pure rip-off.

Interestingly enough, the last ArbiTraCoin project, in particular, was probably a German project and German investors, in particular, were ripped off.

But how do all these crypto MLM’s come together? See here proof no 1 for a connection: The Facebook account infinityeconomics1 (operator of XIN) has named the facebook page We Go Crypto and renamed it internally to ArbitraCoin. Fintelegram is currently looking into further into evidence.

We Go Crypto Facebook
We Go Crypto Facebook

The probability is quite high that many investors in the Infinity Economics MLM system are now left behind on worthless XINs, as well as on worthless SMART ARBITRAGE software packages and/or ArbitraCoinTokens.

At the FMA Conference on October 4, 2018, Mr. Kumpfmüller, CEO of the FMA, reported that every second criminal complaint filed by the FMA with the Public Prosecutor’s Office now revolves around the crypto money industry. Well, we can imagine that very well.

After thought: We would be grateful for any more detailed information regarding the above systems and people involved

.

 

 

14 Comments

  1. T T November 13, 2018

    Their next scam is the current SmartTradeToken Icon.

    • charlenelens charlenelens Post author | November 14, 2018

      Just checked on it, we will take a closer look at it. Thanks for reporting.

      • T T November 14, 2018

        Since someone tried to talk me in on the IE scam in April 2017, I looked into this. It’s fascinating how people can be so blind towards an obvious scam. It’s probably the mony they’ve invested that keeps them in this. It’s clear to me that this scam is for those who are not well informed in IT and cryptos.
        The IE blockchain is a hardfork of the NXT blockchain. There are probably no new features to it. Only banal cosmetics. The whitepaper is a plagiat as well.
        They claim that smart contracts was implemented on IE, but they are not working. The whole thing is a mess. There is no documentation. Most of the documentation is a collection of abstracts on the specific topics. No tutorials at all. I tried the smart contracts. They couldn’t compile. I’ve asked for working smart contracts for IE and the offical marketing guy posted a link to BURST smart contracts and tried to fool me with them. When you try to make something work they put you off: “You need to do the research for yourself!” etc. Of course there is nothing to research and to learn from this mess.
        People in telegram chatgroups activily tried to get a proper coinmarket listing. They got put down with vague excuses from a somewhat anquor member of the community (Wolle). When they kept on questioning these methods, Wolle just left. He was a poser anyway. Always letting people down and never getting anything actual done.
        There are parasites in the community as well. People who sell workshops that are nothing more as late buy in opportunities to the XIN and IE. They run like typical MLM events. Other parasites like Clemens Stockerer (username: Schoepi) sell useless IE and XIN goodies like medals or T-Shirts. It’s painful to watch. Poor people!
        The official IE marketing team lies with the offical Facebook Like count. It’s obvious that about 100k likes are just fake bought ones from Asia. They still try to sell it off as a marketing operation in Asia.

        You got something wrong in the articel:
        XIN (IE) was never listed on vobit. You probably mistake it for MiXIN.

        Arbitracoin is in my opinion a different project from a different team. It looks like some people parted on this one like Norbert. They kicked him out of WGC. Maybe it’s because somone can’t work for two supposedly “best arbitrage softwares in the world”. The scam was probably too obvious at that point.

        WGC is in a new phase. I’m not aware of the details. However it goes like this: You double your investment sum and get 10x more possible Arbitrage trades in WGC. Obviously the scamers didn’t do the math. Someone with a mere 1000+1000 $ investement would get MORE transactions compared to those only investing 50k at the beginning. The outcrry of the community was enormous.

        Researching community memebers is fun. You can trace back some of them to other scams like: Kairos, Maxxkonzept, Swisscoin or Lavylites.

        I seriously can’t understand how blind victims can be to those depressing facts! How can they just ignore the main actors criminal past and present? I tried many times. Bitcointalk-members tried in their forum many times. It’s all futile.

        • charlenelens charlenelens Post author | November 14, 2018

          Thanks very much for your help and info. We will trace each one of your hints and adapt the article accordingly. It was so difficult to find the appropriate infos on the web. THANKS FOR THAT.

  2. René Gruber René Gruber November 14, 2018

    Do your own research and you will notice very fast that this article is just a bunch of shit!!

    • charlenelens charlenelens Post author | November 14, 2018

      Thanks for your comment, so Rene pls tell us what you know about ArbiTraCoin and XIN and all these guys behind, if we are wrong, just tell us. Best Charlene

  3. wurzl wurzl November 14, 2018

    Congratulations.
    This is a perfect summary of FAKENEWS of the last years. A great mixture of things that may have points of contact, which can happen in a networked world, but are otherwise completely independent.
    Who pays you for it?

    • charlenelens charlenelens Post author | November 14, 2018

      Hi Mr. Strack, at least the financial regulatory authorities are interested as well as the enforcement agencies. Best Charlene

  4. […] quick due diligence on the project team would have shown their involvement with the shaddy Infinity Economics, ArbiTracoin and XIN-project. Probably this would have prevented them so show such favourable ratings. We […]

  5. ieCommunity ieCommunity November 25, 2018

    Ich beschäftige mich seit Dez. 2016 mit Infinity-Economics. Einen Betrug konnte ich bis heute zu keinem Zeitpunkt feststellen.

    Ist schon spannend wie absurd hier Kausale Verbindungen zwischen völlig unterschiedliche Firmen hergestellt werden darf.
    Möglicherweise hat der nicht wirklich informierte Autor, unter den unterschiedlichen Community-Mitglieder eine Gemeinsamkeit beim Einkauf auf Amazon entdeckt.
    Das ist für ihn dann Beleg genug, einen kausalen Zusammenhang gegen einen Mitbewerber zu konstruieren. Markethive fühlt sich etwas gar stark von Infinity-Economics ins Abseits gedrängt.

    Fakt ist: Infinity-Economics ist eine echte native dezentrale Blockchain welche das Skript von NXT als Grundlage hat. Bestehende Features wurden angepasst und neue wurden eingebaut.
    (Assets, Currencies, Aliases, Voting, AT = SmartContract, Crowsdfunding, Subscriptions, Escreow, Shkuffling, usw.)

    Fakt ist: Infinity-Economics läuft seit dem Genesisprozess vom 10.1.2017 ununterbrochen und fehlerfrei. Auch die vielen Angriffsversuche konnten der Blockchain nichts anhaben.

    Fakt ist: Das Skript der ieBlockchain ist open source und die Echtheit kann zu jederzeit überprüfen werden. Bislang hat auch noch niemand, weder einen Fehler noch eine Unstimmigkeit bemängelt.

    Fakt ist: der Token XIN von Infinity-Economics hat sich in der Preisentwicklung, wie aller andere Token auch, bärisch verhalten.

    Fakt ist: Ein jeder kann die oben aufgeführten Fakten mit minimalstem Aufwand überprüfen, wenn es denn überhaupt gewollt ist.

    Lieber Autor, wenn Du Infinity-Economics einen Betrug nennen möchtest, dann benenne bitte worin Du einen Betrug ausmachst. Absurde Verbindungen zu nennen reicht da leider bei weitem nicht.
    Es ist vielleicht legitim, das Bedürfnis einer vielseitigen Blockchain mit vielen integrierten Features anzuzweifeln. Ich halte es auch mehr oder weniger für legitim – wenn es auf faire weise geschieht – auf eine geglaubte, zu langsame Entwicklung eines Mitbewerbers hinzuweisen. Aber daraus einen Betrug zu konstruieren ist nicht nur absurd, es ist selber betrügerisch.

    Es gibt übrigens noch einen Fakt: Infinity-Economics hat noch eine wichtige Eigenschaft, die viele kaum verstehen. IE ist DAO organisiert. Will heissen, es gibt hinter Infinity-Economics keine kontrollierenden oder manipulativ eingreifenden Firmen, Institutionen oder sonst was, welche mit einem Million Budget Marketing betreiben, um seine Blockchain puschen zu können.
    Es ist also völlig normal, wenn IE scheinbar nicht performt wie andere gepuscht Token.

    English translation.
    I have been working with Infinity-Economics since Dec. 2016. I have never detected a scam.

    It is exciting how absurd it is to establish causal connections between completely different companies.

    Perhaps the not really informed author has discovered a common ground among the different community members when shopping on Amazon.

    For him, this is proof enough to construct a causal connection against a competitor. I think Markethive feels a bit pushed aside from the Infinity-Economics.

    The fact is: Infinity-Economics is a real native decentralized blockchain based on the script of NXT. Existing features have been adapted and new ones have been added.
    (Assets, Currencies, Aliases, Voting, AT = SmartContract, Crowsdfunding, Subscriptions, Escreow, Shkuffling, etc.)

    Fact is: Infinity-Economics runs uninterrupted and error-free since the Genesis process of 10.1.2017. Also the many attack attempts could not harm the blockchain.

    Fact is: The script of the blockchain is open source and the authenticity can be checked at any time. So far nobody has complained about any error or discrepancy.

    Fact is: the token XIN from Infinity-Economics has behaved bearish in the price development, like all other tokens.

    The fact is: Anyone can check the facts listed above with minimal effort, if that’s what they want.

    Dear author, if you want to call Infinity-Economics a scam, please name where you are seeing a scam. Calling absurd connections is unfortunately not enough.

    It may be legitimate to doubt the need for a versatile blockchain with many integrated features. I also think it is more or less legitimate – if it is done fairly – to point out that a competitor is developing too slowly. But to construct a fraud out of this is not only absurd, it is itself fraudulent.

    By the way, there is another fact: Infinity-Economics has another important feature that many people hardly understand. IE is DAO organized. In other words, there are no controlling or manipulatively intervening companies, institutions or anything else behind Infinity-Economics that do budget marketing with one million dollars to push their blockchain.

    So it’s perfectly normal for IE not to seem to perform like other pushed tokens do.

  6. ieCommunity ieCommunity November 25, 2018

    Ich beschäftige mich seit Dez. 2016 mit Infinity-Economics. Einen Betrug konnte ich bis heute zu keinem Zeitpunkt feststellen.

    Ist schon spannend wie absurd hier Kausale Verbindungen zwischen völlig unterschiedliche Firmen hergestellt werden darf.
    Möglicherweise hat der nicht wirklich informierte Autor, unter den unterschiedlichen Community-Mitglieder eine Gemeinsamkeit beim Einkauf auf Amazon entdeckt.
    Das ist für ihn dann Beleg genug, einen kausalen Zusammenhang gegen einen Mitbewerber zu konstruieren. Markethive fühlt sich etwas gar stark von Infinity-Economics ins Abseits gedrängt.

    Fakt ist: Infinity-Economics ist eine echte native dezentrale Blockchain welche das Skript von NXT als Grundlage hat. Bestehende Features wurden angepasst und neue wurden eingebaut.
    (Assets, Currencies, Aliases, Voting, AT = SmartContract, Crowsdfunding, Subscriptions, Escreow, Shkuffling, usw.)

    Fakt ist: Infinity-Economics läuft seit dem Genesisprozess vom 10.1.2017 ununterbrochen und fehlerfrei. Auch die vielen Angriffsversuche konnten der Blockchain nichts anhaben.

    Fakt ist: Das Skript der ieBlockchain ist open source und die Echtheit kann zu jederzeit überprüfen werden. Bislang hat auch noch niemand, weder einen Fehler noch eine Unstimmigkeit bemängelt.

    Fakt ist: der Token XIN von Infinity-Economics hat sich in der Preisentwicklung, wie aller andere Token auch, bärisch verhalten.

    Fakt ist: Ein jeder kann die oben aufgeführten Fakten mit minimalstem Aufwand überprüfen, wenn es denn überhaupt gewollt ist.

    Lieber Autor, wenn Du Infinity-Economics einen Betrug nennen möchtest, dann benenne bitte worin Du einen Betrug ausmachst. Absurde Verbindungen zu nennen reicht da leider bei weitem nicht.
    Es ist vielleicht legitim, das Bedürfnis einer vielseitigen Blockchain mit vielen integrierten Features anzuzweifeln. Ich halte es auch mehr oder weniger für legitim – wenn es auf faire weise geschieht – auf eine geglaubte, zu langsame Entwicklung eines Mitbewerbers hinzuweisen. Aber daraus einen Betrug zu konstruieren ist nicht nur absurd, es ist genauso betrügerisch.

    Es gibt übrigens noch einen Fakt: Infinity-Economics hat noch eine wichtige Eigenschaft, die viele kaum verstehen. IE ist DAO organisiert. Will heissen, es gibt hinter Infinity-Economics keine kontrollierenden oder manipulativ eingreifenden Firmen, Institutionen oder sonst was, welche mit einem Million Budget Marketing betreiben, um seine Blockchain puschen zu können.
    Es ist also völlig normal, wenn IE scheinbar nicht performt wie andere gepuscht Token.

    Und ja, entgegen der Behauptung hier, Infinity-Economics ist Weltweit bei keiner Finanzbehörde in Aufsicht.

    English translation.
    I have been working with Infinity-Economics since Dec. 2016. I have never detected a scam.

    It is exciting how absurd it is to establish causal connections between completely different companies.

    Perhaps the not really informed author has discovered a common ground among the different community members when shopping on Amazon.

    For him, this is proof enough to construct a causal connection against a competitor. I think Markethive feels a bit pushed aside from the Infinity-Economics.

    The fact is: Infinity-Economics is a real native decentralized blockchain based on the script of NXT. Existing features have been adapted and new ones have been added.
    (Assets, Currencies, Aliases, Voting, AT = SmartContract, Crowsdfunding, Subscriptions, Escreow, Shkuffling, etc.)

    Fact is: Infinity-Economics runs uninterrupted and error-free since the Genesis process of 10.1.2017. Also the many attack attempts could not harm the blockchain.

    Fact is: The script of the blockchain is open source and the authenticity can be checked at any time. So far nobody has complained about any error or discrepancy.

    Fact is: the token XIN from Infinity-Economics has behaved bearish in the price development, like all other tokens.

    The fact is: Anyone can check the facts listed above with minimal effort, if that’s what they want.

    Dear author, if you want to call Infinity-Economics a scam, please name where you are seeing a scam. Calling absurd connections is unfortunately not enough.

    It may be legitimate to doubt the need for a versatile blockchain with many integrated features. I also think it is more or less legitimate – if it is done fairly – to point out that a competitor is developing too slowly. But to construct a fraud out of this is not only absurd, it is itself fraudulent.
    By the way, there is another fact: Infinity-Economics has another important feature that many people hardly understand. IE is DAO organized. In other words, there are no controlling or manipulatively intervening companies, institutions or anything else behind Infinity-Economics that do budget marketing with one million dollars to push their blockchain.

    So it’s perfectly normal for IE not to seem to perform like other pushed tokens do.

    And yes, contrary to what is claimed here, Infinity-Economics is not supervised by any tax authority in the world.

    • charlenelens charlenelens Post author | November 25, 2018

      Go on dreaming!

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