Spanish police arrest CEO of Arbistar cryptocurrency project Arbistar 2.0

Spanish police have arrested the head of the Arbistar 2.0 cryptocurrency project, Santi Fuentes. He is suspected of fraud and money laundering, according to CoinDesk.

The case is linked to the trading bot Community Bot, which the company halted in September. As a result, the accounts of 32,000 users were blocked. Tulip Research analysts estimated losses at $1 billion and suspected the developer of an exit scam.

Fuentes denied the fraud allegations. He said the halt of Community Bot was due to an error — the service allegedly paid out 28% more profit than was actually earned.

The Arbistar CEO did not disclose the exact amount of losses, but promised to pay out funds daily to “around 100 clients” per day. He also stated that the service, which has 120,000 users, has not been closed.

Earlier, Tulip Research discovered not only signs of a financial pyramid in Arbistar. It also found a link between the Spanish project and the Russian darknet marketplace Hydra Market.

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