Spanish investigators have uncovered significant bitcoin movements tied to Arbistar, the cryptocurrency platform that collapsed in September 2020 after operating as a fraudulent scheme. According to findings from the Guardia Civil, digital wallets connected to the now-defunct firm processed massive transfers even after its collapse.
Arbistar, operated by parent company Arbicorp from southern Tenerife, froze investor accounts in September 2020, citing a failure in its automated cryptocurrency trading bots. The platform had promised weekly returns of approximately 28% and attracted tens of thousands of victims across 30 Spanish provinces and international locations including Mexico, Venezuela, France, and Andorra.
Spanish authorities classified Arbistar as a pyramid scheme affecting up to 32,000 investors, with damages estimated between $111 million and over $220 million. Approximately 881 bitcoin was moved to external wallets around the time of the platform's collapse.
The scale of post-collapse transfers escalated significantly in the months following September 2020. Between January and March 2021, wallets linked to key defendants registered inflows and outflows collectively exceeding 20,000 bitcoins, valued at more than $1.1 billion based on bitcoin's price at that time. Spanish prosecutors noted that roughly $1 billion worth of investor funds remained unaccounted for, with authorities indicating these transactions were directed to individuals in the administrators' inner circle without legitimate operational justification.
Founder Santiago Fuentes Jover and partner Diego Fernández Nojarova faced prosecution for aggravated fraud, document falsification, and membership in a criminal organization. The Appeals Chamber of the Audiencia Nacional increased their sentences to 16 years and 11 years, respectively. Spanish authorities continue to trace the cryptocurrency network tied to the defunct platform as part of ongoing money-laundering investigations.
