ARBITRACOIN: The decline of the era of unregulated ICO’s and crypto-MLM systems seems irreversible. At least if the number of whistleblower messages and complaints about ICOs, cryptosystems and their consultants and distributors can be taken as an indicator. Last week we sent out a “Request for Information” regarding BLOCKBASE, COINTED and OMNIA TECH and received many, sometimes very detailed answers. A big thank you to all our supporters. Together we can make a difference for investors’ protection. We are therefore confident that we will be able to publish a detailed report on BLOCKBASE, COINTED, and OMNIA TECH over the next couple of days.
ARBITRACOIN – A new OPTIOMENT?
Over the last few days, we have also received complaints and information about the (presumably) German Crypto-MLM system ARBITRACOIN. The cryptosystem is supposedly operated by an ARBITRACOIN LLC with a strong Russian reference. There is no imprint on the website.
After the first checks, we were able to determine that this system resembles the recently collapsed OPTIOMENT crypto-MLM scheme. ARBITRACOIN claims that it has developed a “trading bot”, i.e. a trading algorithm that can exploit price differences in cryptocurrencies on the various crypto exchanges and thus achieve trading profits. The business model works with a “lending approach”, i.e. investors technically provide a loan which is used for crypto trading purposes. In return, investors receive a share in the profits and/or a fixed interest rate. In our opinion, this is a business model that needs to receive a license from the German BaFin or the Austrian FMA, but in any case, it should fall within its area of supervision and regulation.
ARBITRACOIN conducted an ICO in February 2018 and sold its cryptographic “investment coin” ATC, which is listed on crypto exchanges. However, ATC appears to be one of the so-called “shit coins” or “dead coins” in terms of market capitalization and trading volume. It is not clear at the moment how much money they has raised in the ICO. We guess about $45m but would be grateful for any information in this regard.
ARBITRACOIN promises its lenders (investors) unrealistic returns, e.g. 2% return per day or 60% per month in FIAT currency. These return promises are also reminiscent of OPTIOMENT. The system is operated by various distributors (leaders) in Germany and Austria. New investors are acquired in the course of extensive roadshows and events as well as by using quite experienced online marketing people (we are already drafting a report on this). In addition we have already identified some of these distributors. Similar to OPTIOMENT, these distributors do not know who is at the top of the system. The people behind the scheme are not known to the distributors or the investors. No names are mentioned on the website or in the white paper. Allegedly, the system has already collected more than 4,000 Bitcoins (BTC) from investors.
Persons identified so far!
Similar to OPTIOMENT, ARBITRACOIN operates largely in the background. However, some key persons of the ARBITRACOIN scheme have already been disclosed. Michael HERRMANN in Germany is a diligent promotor, the Austrians Karl DOPPLER and Johannes DOPPLER with their KRYPTO GMBH are acquiring lenders in Austria as does Christian Andrei GHENTA. In Vienna, we also discovered Charlotte NOWAK, who is also promoting the system.
These are at least those persons mentioned in connection with ARBITRACOIN and/or advertising the system via the social media, YouTube, and personal contacts.
The Calm Before the Storm?
ARBITRACOIN‘s social channels show increasingly unsatisfied investors. Tone and wording of the postings remind a lot of OPTIOMENT before the collapse. Above all the recurring assurances of the administrators that new features will soon come and everything will be better should raise questions. The last entry on the official Telegram Channel is from May 31st, 2018 and promises many new features. Since then, there has been radio silence on the canal. On the German Telegram channel, a message to the ARBITRACOIN leaders is posted with the request to stay patient and that all problems will be solved soon. Red flags again.
The last tweet on the ARBITRACOIN Twitter channel took place on 14 May 2018 and has been quiet now for 7 weeks. There are many indications that it could be the calm before the storm.
We will continue our research and plan to publish a detailed report about ARBITRACOIN soon. For this purpose, we ask for further information about our whistleblower system. All information will be treated and evaluated in strict confidence.