A report by the Guardia Civil’s investigation team has revealed that, both before and after the collapse in September 2020 of the cryptocurrency firm Arbistar, based in the south of Tenerife, there were substantial movements of bitcoins via systems designed to obscure the origin of the funds.
Specifically, «mass transfers» of cryptocurrencies to individuals associated with Arbistar were detected, with no evidence of arbitrage or a common pattern; the Public Prosecutor’s Office attributes these actions to the company’s three founders, led by Santiago Fuente Jover.
According to estimates by the Guardia Civil, on the date of the crash, 881 bitcoins were transferred to other wallets, which a few months later were worth 32.5 million euros, according to a ruling recently issued by the National High Court.
Arbistar: Wallets moved cryptocurrencies worth 710 million euros
Once news of the company’s collapse broke, between January and March 2021, inflows and outflows of more than 20,000 bitcoins, equivalent at the time to 710 million euros, were traced to the defendants‘ wallets.
The Arbistar scheme is regarded as one of the biggest cryptocurrency pyramid schemes in Spain.
According to the investigation, it defrauded more than 200 million euros and affected some 32,000 people between May 2019 and September 2020.
Following the criminal proceedings for fraud, criminal organisation and forgery of documents, the company’s two main directors were sentenced to 16 and 11 years‘ imprisonment, whilst further proceedings have now been brought for money laundering.
Around the time the company began informing investors of liquidity problems affecting its ability to meet payments, it used a service known as ‚mixing‘, which is employed to anonymise funds and make it difficult to trace their origin.
Despite this, it was found that some of the beneficiaries were relatives of the administrators. Four remain under investigation, whilst a further eight have not yet been identified.
The Audiencia Nacional has launched separate money-laundering proceedings
Last April, the National Court decided to open a separate investigation into a possible offence of money laundering, after the company’s two senior executives had been convicted.
The new investigation was launched following a report by the Guardia Civil on cryptocurrency transactions, requested by the Tenerife Judicial Police, and another report drawn up by the cybercrime intelligence unit on the operation of ‚Community Bots‘.
That ruling named four new suspects, who had been acquitted in the main case on fraud charges, and also ordered the opening of a separate civil liability case against a former director.
The Audiencia Nacional is examining objections to the expanded investigation
The current appeal has been lodged by one of those sentenced to 11 years‘ imprisonment for fraud, who alleges denial of due process, failure to meet deadlines and alleged irregularities.
The Public Prosecutor’s Office requested that the appeal be dismissed, on the grounds that the original court order did not include the transfers made to Club Arbistar, in which several individuals under investigation are named, and which were carried out both before and after the collapse.
The appellant also objected to the Public Prosecutor’s Office’s request to broaden the scope of the investigation and charge further individuals, arguing that the sole aim was to increase his involvement in the proceedings.
According to the court order, this suspect, together with Fuente Jover and two other individuals, transferred significant amounts of cryptocurrency to the newly charged defendants.
In March, the National High Court rejected the Public Prosecutor’s Office’s request to expand the list of defendants, a decision that has now been overturned as the court ruled that it must not amount to a «guarantee of impunity» for those potentially responsible for the plot. EFE
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