3rd Party Arbitrage Scams
Automated arbitrage scams using so called trading bots seem like clever scams that are relatively new, but in fact, these scams aren't that clever, we were able to replicate a basic prototype in just a few hours. These scams first surfaced late 2021 in the form of DataA1 in South America before migrating to Nigeria (EDAI), South Africa, Iran, Madagascar (Tamer AI) and back to Nigeria again (CALA, IEarnBot) There are others too, Rocket in Egypt and another in Portugal and my partners even found a Russian version so its important we get out in front of this scam now and save as many people as we can.
Each iteration boasts the same back story claiming JP Morgan as founding the company, Harvard quants etc. But no actual inventor is every offered. Cala, Tamer and IearnBot all have the exact same documentation, the only difference is the names have been copied and pasted onto each document. I’m not kidding this is how dumb these fuckers are. Speak to each company and they all attempt to sell their product as the original, the others iterations are just copies of their software. Yet no physical office address is ever offered. Same operational hours, same bot prices etc. Look at the certificates below.
Next lets take a closer look at the MSB certificates and what they actually mean. Firstly, the MSB registration addresses are virtually identical save a change in the suite only.
When we confronted CALA in regards to TAMERAI scamming ten thousand customers, they claimed no affiliation, the addresses here suggest otherwise. All three companies hang there hat on the MSB as there ultimate sign of legitimacy, however, when you search on the Fincen website underneath the website states the following warning.
The inclusion of a business on the MSB Registrant Search Web page is NOT a recommendation, certification of legitimacy, or endorsement of the business by any government agency. So basically the MSB ain't worth shit.
The final document is the office of good standing in Colorado, TamerAI, CALA and IEarnBot, all boast this. I went to the Colorado Business Registry to verify the other certificate “Certificate Of Fact Of Good Standing”.
I inputted the business name and registration number on the certificate Unlike the Nigeria CAC Registry; the Colorado Registry gave no data about each business.
IEarnBots Twitter account just copied our Twitter feeds of what to report on but note that the IEarnBot Twitter account was opened in March. True they have 100 followers, but most of the followers that follow IEarnBot and were also registered in March and only follow IEarnBot. LOL!!! I'm seriously not kidding. I've stopped counting red flags at this point.
Because HLT went on the offensive against TamerAI they have responded by impersonating me using a south African mobile phone number, so if I call you from Africa, just message back and ask them to face time instead. Thankfully, I work for the UK Gov and impersonating a UK government employee will have serious consequences.
So this is how the scam actually works, we were able to replicate the process quite easily. The scammers setup API’s with each exchange, but these API’s are none transactional, they simply pull out currency pricing data from each exchange. Each API data extraction from each exchange is then automatically imported into a central database, we simply used three columns, exchange, currency and price. Once the data is set, (we used PowerBi and a measure to automate the process, believe me, no artificial intelligence in sight at this point lol) we were able to quickly automate the price differences, this is is then delivered to the app and multiplied by the investment level on the bots for each user. Once the API’s are setup the rest was easy. In our model we were able to ensure that our process never had a negative transaction, but it is all fake, so the losing trades on the these apps are just for show. But of course the trades aren’t real.
I have asked each exchange to comment if they have indeed agreed to partner any arbitrage platforms. Huobi’s external wallet currency transfer warns the user about not sending tokens to an arbitrage platform and the support person from Huobi reminded us of that. Coinbase support were far more talkative though as they confirmed that they have not entered into any third party arbitrage partnerships which suggests that when arbitrage trading is deemed viable, it will be the exchanges that take the lead on this as 3rd party platforms cant be trusted, so far EDAI, DATA AI and TAMER AI have all ended up scamming their customers. Cala and IEarrnbot will do the same, watch out for giveaways as the exit scam is coming.
I then posted my chat into IEarnbots WhatsApp group and asked the support person I spoke to prove the applications legitimacy by explaining the arbitrage process. Because to make an automated arbitrage process work there are specific requirements needed. I wont discuss the requirements here. I also asked the customer support person to show the trading wallets for each currency IEarnbot are claiming to trade so we can track the transactions and see which exchanges the currencies are being bought and sold on, naturally they refused to answer any questions. Previously the CALA support showed his criminal mentality when he admitted TamerAI was a scam by trying to taunt me.
Since publishing the conversation with Coinbase, CALA, removed Coinbase from their corperate partners list. With that in mind we went to another exchange and asked the same question. You can see Geminis response below confirming that CALA were NOT a partner of Gemini, just like they were not a partner of Coinbase.
Faking corporate partners for legitimacy really sums up this scam. But fear not, it must be time for their exit scam soon.
Gemini suggested that we contact the FBI in relation to this fake scam platform. Enough said really.
Also look out for XM-AI based in the Philippines this time. These scams are so vile that they use local starvation of some sort of local issue to push their narrative that they are here to help. They are criminals, and scammers and you need to stay away from them.
Another iteration has been reported to us. This one is called Afrique Arbitrage System. AAS, or ASS for short. Don't fall for it guys.