Arbitrade website goes quiet
Arbitrade’s future plans in Bermuda are a mystery after its website was cleared of information.
It is a year since Arbitrade announced plans to create a “world-class cryptocurrency exchange and coin company” in Bermuda, training Bermudians and eventually having 400 employees on the island.
However, its global headquarters, the seven-floor Victoria Hall, on Victoria Street, remains in darkness nine months after being acquired, and its website has reverted to a “coming soon” message.
Arbitrade was separated from a family of cryptotokens and cryptomining operations due to a business deal involving two other companies. That deal was completed last week.
It has also been indicated that the cryptocurrency exchange and coin company will no longer possess its purported “title” to gold bullion worth $16 billion, which Arbitrade said would be used to back the cryptotokens.
Arbitrade’s website became devoid of information a week ago. A list of directors and officers vanished, along with details of its plans, including those regarding the creation of a cryptocurrency exchange called the Bermuda Block Exchange, and photographs of its global headquarters Victoria Hall, on Victoria Street.
The website now shows the words “coming soon” and the e-mail address firstname.lastname@example.org.
It is a similar situation at the website of Cryptobontix Inc. Cryptobontix was thought to have been acquired by Arbitrade in March 2018, until it was announced two months ago that the purchase never closed due to timing problems and regulatory approvals.
Cryptobontix Inc, a Canadian-based company, has now been acquired by United Arab Emirates-based Sion Trading FZE. That deal was completed on June 28, and included all assets belonging to Cryptobontix, including its family of four cryptotokens.
A claimed gold agreement giving Arbitrade “title” to 395,000 kilograms of gold bullion, to be used to back the cryptotokens, was to be transferred to Cryptobontix ahead of the closing of its acquisition by Sion Trading FZE. Arbitrade has never revealed the name of the independent accounting firm it said had verified the safe keeping receipt for the bullion.
Sion Trading FZE had been acting as the precious metals procurement agent for Arbitrade.
Last week, a day before the deal between Sion and Cryptobontix was completed, Cryptobontix issued an apology for a technical error that had resulted in 1,200 e-mail addresses on a private directory of subscribers to its website being made publicly visible for a short time. The message was shared by Arbitrade. It was at about this time that the websites of the two companies reverted to “coming soon” messages.
Last Friday, Max Barber, president of Sion Trading FZE, in a statement said: “Sion Trading FZE [has] completed the purchase and acquisition of all shares and assets of Canadian crypto firm, Cryptobontix Inc. The transference of assets includes the tokens — Dignity, Namaste, Honor, and Orectic.
“Subscribers and token holders can look forward to more exciting news following the upcoming holiday period in the United States and Canada.”
In light of the changed circumstances surrounding Arbitrade, The Royal Gazette has sent it a request for information about its future plans.
Arbitrade is not listed as a licensed entity on the Bermuda Monetary Authority website.
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