A Brazilian court has given a company operating an automated Bitcoin arbitrage service 24-hours to return the funds of two of its investors. The Atlas Quantum platform has reportedly faced difficulties with withdrawals since the country’s securities regulator took action against it in August.
According to a report in BeInCrypto Brazil, Atlas Quantum will need to deposit more than $250,000 worth of Bitcoin (BTC) to refund the two aggrieved users. One of those bringing the matter to court has been waiting on a withdrawal from the platform since September 4, 2019.
Atlas Quantum is a Bitcoin arbitrage trading service based in Brazil. The service supposedly identifies price differences across various cryptocurrency trading venues on behalf of its users. It then automatically buys a digital asset at the lower price and sells it at the higher one.
Blockchain expert Guilherme Reis, as cited by local publication HojeEmDia, says that such systems can indeed generate profits. However, they get considerably less effective the more people use them. Sudden increases in buying pressure at the lower-priced exchange and selling pressure at the higher exchange quickly moves the two prices together. Reis explains:
“For one, two or three people it is possible to do the operation on time. However, as there are many clients, it is difficult to get the same values for all and, in this case, the investor can lose money.”The Atlas Quantum platform claimed investors would enjoy substantial risk-free profits and withdrawals in less than 24-hours. However, since Brazil’s securities regulator (CVM) intervened in company operations in August, the number of people requesting withdrawals from Atlas Quantum has soared. The report states that the sudden requests for withdrawals caused international exchange’s to suspect fraudulent activity by the platform and thus restricted cashing out.
The lack of withdrawals from Atlas Quantum has not only prompted legal action. Some of those unable to withdraw have turned to selling their trapped Bitcoin for a heavily discounted price. So-called “platform-stuck” BTC has been trading for as little as 80 percent of its regular exchange price.
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Rick D.
A former professional gambler, Rick first found Bitcoin in 2013 whilst researching alternative payment methods to use at online casinos. After transitioning to writing full-time in 2016, he put a growing passion for Bitcoin to work for him. He has since written for a number of digital asset publications.
A former professional gambler, Rick first found Bitcoin in 2013 whilst researching alternative payment methods to use at online casinos. After transitioning to writing full-time in 2016, he put a growing passion for Bitcoin to work for him. He has since written for a number of digital asset publications.
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