The Commodity Futures Trading Commission has accused the creator of the arbitrage cryptobot Arbitraging of fraud.
American Jeremy Rownsville deceived investors by passing off his arbitration bot as a "high-performance" technology for trading cryptocurrencies. The Commodity Futures Trading Commission (CFTC) announced this on its official website.
The regulator claims that the project Arbitraging.co (also known as aBOT) has never actually made transactions on behalf of investors. In fact, Rownsville imitated trading activity, since real complex bots are already available on the market, the CFTC notes. The regulator did not fine Rownsville. 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, arbitrageurs — investors who earn on the difference in the value of an asset on different exchanges — won the most during the "bear market" of cryptocurrencies. This tactic was most often 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.
