The defense lawyers for the victims of the Arbistar case stated that the total number of affected families was 32,000 and the loss was at least 93.4 million euros ($113.55 million).
Lawyers in the Arbistar case disclosed details of a class action lawsuit against the alleged crypto Ponzi scheme
Spanish lawyer Carlos Aránguez, representing 130 victims, pointed out in an interview with Eldiario that the scale of the disaster caused by the so-called encrypted Ponzi scheme Arbistar can be regarded as Spain’s “largest computer scam”.
The victims represented by the lawyers were distributed in Mexico, Venezuela, France, Andorra and nearly 20 Spanish provinces. They claimed to have invested in Arbicorp’s robot program (a company that owns Arbistar) and promised a yield of about 28%, but suddenly , The company announced on September 12, 2020 that it would freeze accounts belonging to 120,000 investors due to the alleged “failure” of one of its cryptocurrency trading robots.
According to Aránguez, in fact, Arbistar’s business model is based on a pyramid scheme, because almost all of its customers are attracted by the Spanish company’s offer, thanks to the recommendation of friends who claim that their investment has generated profit:
The company’s recruitment system is “Bring me your friends, acquaintances and family, and I will reward you”. That is an effective pyramid scheme. This is a Ponzi scheme, as Baldomera Larra did at the time. She was the first Spanish woman to conduct a pyramid scheme, even though everyone knew Carlo Ponzi.
The lawyer told Eldiario that there are currently four class actions against Arbicorp and its CEO and founder Santiago Fuentes. At the request of the victim, Alangues said that they had filed a complaint against fraud, which was convicted of money laundering and involved public finances and criminal organizations. He also added:
The plot is still under investigation, very early stage, there are some unknown parts. Our main interest is to recover the savings of unfairly plundered customers. The case is currently in Arona’s No. 3 Teaching Court, but due to the large volume and complexity of the case, the case must be submitted to the national court.
Although the lawyers commented that tracking the Bitcoin allegedly stolen by Arbicorp is “not an easy task,” they have provided sufficient informatics evidence to the authorities responsible for the investigation.
The so-called Ponzi scheme planner is still on probation
He also requested preventive detention of Fuentes, who is currently on probation. He was first arrested and arraigned on suspicion of crime, criminal organization and money laundering. Fuentes has been hiding from him since September and was arrested in a property in southern Tenerife on October 22, 2020.
However, Fuentes must appear in court on the 1st and 15th before the Arona Education Court on the 3rd of each month. In addition, a ban on leaving Spain was implemented.
Aránguez stated that he contacted the law firm Fuentes by phone with Burofax. Burofax is a service used by Spain for urgent delivery of documents, which can be used as evidence to a third party and contacted by telephone, but as of the time of publication, no response has been received.
The Spanish Public Prosecutor’s Office conducted its first investigation into Arbistar for suspected bitcoin transaction scams. On October 7, 2020, it stated that the preliminary findings indicated that it could not account for US$1 billion in investor funds.
What is your opinion on the suspected case of a large-scale encrypted Ponzi scheme in Spain? Let us know in the comments section below.
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