The American regulator warned about the fraud of the arbitrage cryptobot.
The Commodity Futures Trading Commission accused the creator of the Arbitraging arbitrage cryptobot of fraud
American Jeremy Rounsvil deceived investors by passing off his arbitrage bot as a “high-performance” cryptocurrency trading technology. This was announced on its official website by the Commodity Futures Trading Commission (CFTC).
The regulator claims that the Arbitraging.co project (also known as aBOT) has never actually made transactions on behalf of investors. In fact, Ronesville imitated trading activity, since real complex bots are already available on the market, the CFTC notes. The regulator did not penalize Ronesvil. It is known that the scheme has been operating on the market since May 2018, however, it remains unclear how many people could lose investments through Arbitraging.
Recall, according to a Reuters report, most of all during the “bear market” of cryptocurrencies, arbitrageurs won — investors who earn on the difference in the value of an asset on different exchanges. This tactic was most used by hedge funds as well as private investors. According to the publication, such a trading strategy has brought large investors millions of dollars in the recent market decline.
According to a report by auditing giant PricewaterhouseCoopers, the cryptocurrency arbitrage trading strategy is gaining popularity among hedge funds, with a third of them already admitting to using it. For example, investment firm K2 Trading Partners confirmed that its crypto arbitrage fund made a 1% profit during Bitcoin’s 30% drop. At the same time, the arbitrage fund Stack Funds survived the collapse of the cryptocurrency market with a loss of only 0.2%.
Read about how billions are made on the fall of the crypto market in the BeInCrypto editorial material.
