On January 23rd Daily Exposed published its
Crypto Arbitrage Team review
.
On January 25th Crypto Arbitrage Team initiated a KYC exit-scam.
In a “community communication” sent out to affiliate investors, Crypto Arbitrage Team advised;
We have a very serious announcement to make.
Our partner exchanges have informed us that some of the funds used in the daily arbitrage cycle were sourced from illicit activities and therefore have been locked.
After a thorough investigation, we have discovered the funds to belong to some members of the CAT Community. As a result of this, we are in communication with the partner exchanges to verify all the locked funds.
If you were affected, but are sure that your funds were not obtained illicitly, please reach out to our Support Team with your wallet and we’ll make sure to resolve your issue.
Ponzi schemes committing financial fraud pretending to care about illegal activity is nothing new. It’s a common enough exit-scam.
After disabling withdrawals on January 25th, Crypto Arbitrage took a few days to execute their KYC exit-scam. Their next update was on January 27th;
The CAT team has been closely monitoring the situation with BitzLoto and the increasing demand for KYC verification within the industry.
In light of this, we have made the decision to conduct a full verification of all connected wallets to ensure a long and thriving relationship with our CAT community.
As a security measure, we have also decided to pause withdrawals during this time.
For anyone wishing to invest now, the smart contract is open to new investors.
This announcement also provisioned a third Crypto Arbitrage Team reboot;
We have also conducted a maintenance pause on the smart contract. This is in preparation for the migration to the new smart contract with the new daily percentages.
Whether Crypto Arbitrage Team reboots again remains to be seen. Russian crypto Ponzis are a dime a dozen. Personally I think Crypto Arbitrage Team is far more likely to resurface under a new name.
Run by a CEO in a cat mask…
…Crypto Arbitrage Team marketing fell on Dubai resident Luize Ave and Indian serial scammer Ashok Sharma.
The financial arrangement between Ave and Sharma with Crypto Arbitrage Team’s owners is unclear. Ditto total investor numbers and their losses.
The Central Bank of Russia issued a
Crypto Arbitrage Team fraud warning
last October. This prompted the Ponzi scheme to reboot with a different domain name.
Domain names associated with Crypto Arbitrage Team include:
mycat.team
mycatteam.com and
mycat-team.com
Given Crypto Arbitrage Team primarily targeted Indians, it’s unlikely Russian authorities will take further action.
🤖 Quick Answer
What happened to Crypto Arbitrage Team in January?Crypto Arbitrage Team collapsed on January 25th following a KYC exit-scam announcement. The company claimed partner exchanges had locked funds allegedly sourced from illicit activities, affecting community members. The incident occurred two days after Daily Exposed published a critical review of the platform.
How did Crypto Arbitrage Team justify the fund freeze?
The company attributed the freeze to partner exchanges reporting funds from illicit sources used in arbitrage cycles. Following an alleged investigation, CAT claimed locked funds belonged to community members engaged in suspicious activities, requesting affected users to contact support with wallet verification.
What was the scale of the Crypto Arbitrage Team collapse?
The collapse affected multiple affiliate investors and community members holding funds on the platform. The exact number of affected users and total locked amount were not disclosed in the initial announcement, though the incident impacted numerous participants in
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