Home Coins Bitcoin (BTC) Mastermind of Alleged Billion Dollar Spanish Pyramid Scheme Arrested, Faces 16 Year...

Mastermind of Alleged Billion Dollar Spanish Pyramid Scheme Arrested, Faces 16 Year Prison Sentence

- Advertisement -


The CEO of Arbistar the Spanish investment company, Santiago Fuentes, has been arrested and arraigned on charges of fraud, belonging to a criminal organization and money laundering. Fuentes, who has been in hiding since September, was arrested at one of his properties in the south of Tenerife.

The Arbistar Pyramid Scheme

Fuentes’ arrest stems from lawsuits filed by Arbistar clients who allege pyramid fraud after the bitcoin trading company abruptly froze accounts leaving 32,000 families affected.

During a hearing, the Investigating Court Number 3 of Arona (Tenerife) described operations of Fuentes’ Arbistar as a “potential pyramid scheme.” The court released the CEO “on provisional liberty without bail” but ordered the withdrawal of his passport. In addition, Fuentes must report to the Arona Courts every 15 days.

Meanwhile, despite the widespread Spanish media speculation that $1 billion is missing, Judge Javier García Ramila cautions that “at this moment it is premature to estimate the amount of possible fraud, given that the exact number of customers who contracted the product offered is unknown.”

The Spanish court clarifies that it is only proceeding with the case against Fuentes based on 21 complaints that have been filed at “Police stations and Civil Guard barracks in Tenerife, La Palma, Málaga, Huelva, Granada Mallorca, and Lugo.” The total value of missing funds from the 21 reported cases is approximately $367,000.

In the meantime, describing the operations of Fuentes’ organization, court documents say:

Arbistar offered its clients computer tools (“bots”) that automatically executed buy and sell orders in the cryptocurrency brokerage markets thus guaranteeing them a revaluation of their savings of between 8% and 15%.

However, the documents say that the bitcoin investment company’s offer is on the condition that “during a reasonable grace period of two months customers would not be able to cash out their money.”

Consequently, in conclusions based on their findings, investigators say “it has been possible to attest that the aforementioned product could really be a pyramid scam.” Investigators add that “instead of executing the investment committed in the various virtual markets and rewarding the old clients with profits obtained” Arbistar appears to have been funding profit payouts with deposits brought in by new customers.

Possible Money Laundering Uncovered

Investigators also say they unearthed possible money laundering activity involving Venus Capital Trade SL, a shell company that reportedly received $1.32 million from Arbistar.

Meanwhile, Judge Ramila, who refuses to impose more punitive restrictions on Fuentes, says he now “needs to scrutinize countless documents and electronic devices and work with banks to trace diverted customers funds.” Nevertheless, the judge says he is open to “more burdensome measures” being imposed against Fuentes.

Fuentes faces up to 16 years in prison if found guilty.

What are thoughts about Fuentes’ release on provisional liberty without bail? Share your thoughts in the comments section below.

Tags in this story
Arbistar, Arbistar Scheme, avier García Ramila, Bitcoin Fraud, Bitcoin investment, buy and sell orders, cryptocurrency brokerage, Money Laundering, Pyramid Scheme, Santiago Fuentes, Spanish Investment Scheme, Trading bots

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
472FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,555FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.21
GBP
1.34
CHF
1.11
NOK
0.11
JPY
0.01
CAD
0.77
AUD
0.74

Most Popular

Eth2 withdrawals are coming sooner than you think

Withdrawals for Ether staked on Ethereum 2.0 could become available as early as Q1 2021, according to a blog post by staking service...

Reuters runs the headline Bitcoiners have longed to read

The U.S. Dollar Index fell sharply today, extending a 10 month losing streak that places it at the lowest point since April 2018. International news...

Ethereum Scalability Solutions, Connext and Stakenet | XSN Research | by Shahab Behzadi | Dec, 2020

There have been many attempts at upgrading blockchain infrastructure, with the very first one being Lightning Network, which is arguably as old as...

Ethereum’s market cap surpasses GM, CME, and tech stocks — What’s next?

2020 has been an impressive year for the Ethereum network and Ether (ETH) price. In November the Eth2 deposit contract quietly launched and before...
bitcoin
Bitcoin (BTC) $ 18,608.95
ethereum
Ethereum (ETH) $ 583.80
ripple
XRP (XRP) $ 0.604914
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 289.05
bitcoin-cash-sv
Bitcoin SV (BSV) $ 168.89
litecoin
Litecoin (LTC) $ 84.98
eos
EOS (EOS) $ 3.01
binancecoin
Binance Coin (BNB) $ 30.03
okb
OKB (OKB) $ 5.22
tezos
Tezos (XTZ) $ 2.32
leo-token
LEO Token (LEO) $ 1.37
cardano
Cardano (ADA) $ 0.152387
monero
Monero (XMR) $ 127.41
stellar
Stellar (XLM) $ 0.180715
chainlink
Chainlink (LINK) $ 13.41
huobi-token
Huobi Token (HT) $ 3.98
tron
TRON (TRX) $ 0.030214
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 103.09
neo
NEO (NEO) $ 17.63
iota
IOTA (MIOTA) $ 0.325832
nem
NEM (XEM) $ 0.187508
zcash
Zcash (ZEC) $ 74.49
maker
Maker (MKR) $ 537.86
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 6.25
vechain
VeChain (VET) $ 0.014792
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 4.46
kucoin-shares
KuCoin Shares (KCS) $ 0.816743
waves
Waves (WAVES) $ 6.80