An online cryptocurrency arbitrage company incorporated in Rogers three months ago has been ordered to stop selling unregistered securities.
Arkansas Securities Commissioner Eric P. Munson entered the cease-and-desist order against Arbirate, a limited liability company.
Through its website, the company claimed to “boost profits of investors by finding the most profitable cryptocurrency combinations on the exchanges,” thanks to a supposedly unique artificial intelligence system that collected information from more than 20 cryptocurrency exchanges, according to a news release from Munson’s agency.
Arbirate further claimed investors would receive a 6% daily profit and a profit immediately upon investing, according to the release, which also said Munson’s order found that the “guaranteed, daily profits and proprietary AI-based algorithms were false.”
The company website said its office was at 4077 Elm Springs Road in Rogers. Investigators were told by the building manager that Arbirate wasn’t a tenant.
Munson said cryptocurrency websites are increasingly common.
“These companies are using websites that look legitimate and legal, while offering promises of high returns on your investment,” he said. “Do not be afraid to ask questions regarding the legitimacy and registration of a company before you invest. When in doubt, call the Arkansas Securities Department.”