GoArbit has received a securities fraud alert from Argentina’s Comision Nacional de Valores.

As per the
CNV’s February 15th alert
;

GoArbit and Máximo Martínez are not registered as agents in the corresponding Registry of this CNV.

Passive investment opportunities offered by MLM companies constitute securities offerings. This requires registration with financial regulators in every jurisdiction investment is solicited in.

As a result of GoArbit failing to register with the CNV, the regulator has ordered

GOARBIT and Mr. Máximo MARTÍNEZ to immediately terminate the entire territory of the REPUBLIC OF ARGENTINA of any invitation to persons in general or to specific sectors or groups to invest.

GoArbit
launched in May 2020 and pitched a 200% ROI.

The Ponzi scheme was headed up by Maximo Martinez, who I wasn’t able to dig up any additional information on.

What makes CNV’s fraud alert a little odd is that GoArbit
collapsed
in April 2022.

Pre-empting GoArbit’s collapse, Martinez
fled South America for Dubai
in late 2021.

GoArbit attempted to reboot as GoFinTech Group after it collapsed.

The reboot never evolved past setting up a placeholder GoFinTech Group website, which SimilarWeb tracks negligible traffic to.

A visit to GoArbit’s original website domain reveals a third reboot:

GoArbit V3.0 is yet another Ponzi scheme, this time dressed up as square token staking.

Square Token is a BEP20 token created by GoFinTech Group in mid January.

BEP20 tokens can be created in a few minutes at little to no cost. The GoArbit scammers have specifically created square token for their third Ponzi reboot.

GoArbit’s new fraudulent business model can be summed up as:

GoArbit affiliates invest in square tokens (generated on demand out of thin air)

square tokens are parked with GoArbit (staking)

the more square tokens are parked with GoArbit the higher the return paid out (in square tokens)

early GoArbit investors cash out their square tokens, stealing funds invested by later investors

A roadmap provided on GoArbit’s website suggests the third Ponzi reboot launched in late 2022:

Maximo Martinez is purportedly still hiding out in Dubai:

SimilarWeb tracks declining traffic to GoArbit’s website, down from a November 2022 reboot launch record of 4.5 million monthly visits.

I suspect the vast majority of this traffic is GoArbit victims seeing if there’s any news on recovery, realizing it’s the same Ponzi rebooted again and leaving.

As of January 2023, SimilarWeb tracked top sources of traffic to GoArbit website as Colombia (48%), the Dominican Republic (16%) and the US (10%).

Argentina scraped in as the fifth largest at 6%.

Ponzi reboots rarely last as long as their predecessors. Pending GoArbit collapsing again, we’ll keep you posted.

Update 8th January 2024 – 
Not sure exactly when GoArbit collapsed again but, as at the time of this update, GoArbit 3.0’s and SquareToken’s websites are inaccessible.

🤖 Quick Answer

What securities fraud alert has been issued against GoArbit?
Argentina's Comision Nacional de Valores (CNV) issued a fraud alert on February 15th against GoArbit and Máximo Martínez for operating unregistered securities offerings. The company failed to register as agents in the CNV Registry and was ordered to cease all investment solicitations throughout Argentina's territory immediately.

Why did Argentina's financial regulator take action against GoArbit?
GoArbit offered passive investment opportunities through its MLM structure without registering with the CNV, which is legally required for securities offerings. The regulator determined that GoArbit's investment products constituted unregistered securities and mandated immediate cessation of operations in Argentina.

What type of investment scheme did GoArbit operate?
GoArbit, launched in May 2020, operated as a Ponzi scheme headed by Máximo Martínez

🔗 Related Articles

- Epic Slim Review: Weight loss coffee + collagen BEpic spinoff
- Trusted Smart Chain Review: TSC token securities fraud
- iX Global’s & Debt Box’s IN8 NFT grift collapses
- Innova Review: Dubai securities fraud pyramid scheme
- iN8 promotion shifts to South America