Fun

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

News Feed - 2020-10-24 04:10:31

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


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. Bitcoin Businesses on the Mend: Report Shows 57% of Crypto Execs Expect the Industry to Accelerate, Companies Are Hiring NEWS | 9 hours ago Grayscale Adds $300 Million in Cryptocurrency Assets Under Management in Just 24 Hours NEWS | 12 hours ago 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 Spot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here. 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. Read disclaimerShow comments

News Feed

It’s Time to Build: Adshares Reveals Exciting New Road Map After Successful 2021
It’s Time to Build: Adshares Reveals Exciting New Road Map After Successful 2021 sponsored As one of the most trusted and best evaluated crypto advertising projects –Adshar
Indian Crypto Industry Launches Campaign Urging Lawmakers to Dismiss Crypto Ban Bill
Indian Crypto Industry Launches Campaign Urging Lawmakers to Dismiss Crypto Ban Bill Indian crypto exchanges have pooled their resources together and launched a
Top New Crypto to Buy as Japan Considers Approving Bitcoin ETFs
Japan is making a dramatic shift in its stance on cryptocurrency. The Financial Services Agency (FSA), which once imposed a steep 55% tax on crypto income, is now considering loweri
Ethereum Price Maintains Movement Inside Ascending Triangle, Is Another Crash Coming?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
The Opendao Gives Xmas Airdrop to Opensea Users
The Opendao Gives Xmas Airdrop to Opensea Users New decentralized organization Opendao gave users of Opensea, one of the biggest NFT marketplaces by trading volume, a gift on Chris
Gemini Forms Creditors Committee With Houlihan Lokey to Resolve Genesis Liquidity Issues
Gemini Forms Creditors Committee With Houlihan Lokey to Resolve Genesis Liquidity Issues Roughly two weeks ago a report from the Financial Times (FT) claimed Genesis Global Capital
Elon Musk Tempts McDonald’s to Accept Dogecoin — McDonald’s Replies ‘Only if Tesla Accepts Grimacecoin’
Elon Musk Tempts McDonald"s to Accept Dogecoin — McDonald"s Replies "Only if Tesla Accepts Grimacecoin" Tesla CEO Elon Musk says that he will eat a happy meal on television if Mc
Bitcoin to Trigger the Largest Wealth Transfer in History – Get Free $BTC with BTC Bull Token
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Major Estonian Bank LHV Starts Offering Cryptocurrency Trading via Bitstamp
Major Estonian Bank LHV Starts Offering Cryptocurrency Trading via Bitstamp One of the largest banks in Estonia, LHV, is now offering cryptocurrency trading directly from its app t
Bitcoin Hashrate Briefly Slips Below 200 EH/S During Market Rout, Less Than 100K Blocks Left Until the Halving
Bitcoin Hashrate Briefly Slips Below 200 EH/S During Market Rout, Less Than 100K Blocks Left Until the Halving After reaching an all-time high on June 8, Bitcoin’s hashrate
Cardano (ADA) loses top 10 crypto spot as Tron sees growth
Nancy Lubale6 hours agoCardano (ADA) loses top 10 crypto spot as Tron sees growthADA falls from the top 10 list of largest cryptocurrencies as competing blockchains see an uptick in users. 998 Total views1 Total sharesL
New York regulator hunts crypto and AI specialist for policy unit
Arijit Sarkar13 hours agoNew York regulator hunts crypto and AI specialist for policy unitThe NYDFS is recruiting a policy specialist to address key crypto, DeFi and AI issues within financial services.1330 Total views2