• Follow us

Economy

Arbitrade COO leaves and leads new company | The Royal Gazette:Bermuda Business

Scott Neil, Assistant Business Editor

Published Aug 5, 2019 at 8:00 am (Updated Aug 4, 2019 at 6:50 pm)

A winding path: coming soon messages appear on the websites for Dignity Mining Group, Arbitrade and Cryptobontix, while the Dignity Gold website features a press release announcing the launch of Dignity Holdings and its subsidiaries (Composite image by Scott Neil)

A winding path: coming soon messages appear on the websites for Dignity Mining Group, Arbitrade and Cryptobontix, while the Dignity Gold website features a press release announcing the launch of Dignity Holdings and its subsidiaries (Composite image by Scott Neil)

Related Stories

Arbitrade’s chief operating officer Stephen Braverman has left the company and is leading a new business that owns the crypto tokens once controlled by Arbitrade.

Separately, a gold company in the US said it stopped doing business with Sion Trading FZE, a gold procurement agent for Arbitrade, very soon after the business arrangement was announced in December.

The future plans of Bermudian-registered Arbitrade, now bereft of what it thought were its crypto tokens, are unknown. During the past three months The Royal Gazette has made repeated attempts to contact Arbitrade, but has received no response.

Arbitrade’s former COO, Mr Braverman, is now president and chief executive officer of newly created Dignity Holdings LLC. Investment and real estate businessman Kent Swig is the chairman. He is president of New York-based Swig Equities LLC.

Dignity Holdings said that through its subsidiaries it had acquired Cryptobontix and its tokens. It intends to grow into “one of the largest, most stable global cryptocurrencies”.

The company and its subsidiaries are registered in Delaware, with offices in New York City, according to a July 25 statement.

There has been no update on Arbitrade’s future plans since January.

A year ago the cryptocurrency exchange and mining company said it would create hundreds of jobs on the island, that it had “title” to billions of dollars of gold bullion to back its crypto tokens, and that it would store bullion in Bermuda.

It acquired the seven-storey Victoria Hall office building, on Victoria Street, in October to be its global headquarters. However, ten months later the building remains unused and in darkness.

At the end of June its website was cleared of all information, including a list of officers and directors, and replaced with a “coming soon” message.

Arbitrade is still listed as active at Bermuda’s Registrar of Companies. The company does not have a licence to operate a digital asset business on the island.

Arbitrade lost control of Cryptobontix Inc and its family of crypto tokens in unusual circumstances. It was thought it had acquired Cryptobontix in March 2018, but in May this year it was announced that deal was never completed due to timing problems and regulatory approvals, and that Sion Trading FZE was to acquire Cryptobontix. That new deal was said to have been completed in June.

Arbitrade previously claimed it had “title” to 395,000 kilograms of gold bullion, which would be worth $18 billion at today’s market price, and that the bullion would be used to back its crypto tokens. It claimed that in partnership with Sion it had secured title to the gold through an SKR, or safe keeping receipt.

Arbitrade never revealed who had given it title to the gold and under what conditions, nor where the gold was, or the name of the “independent public accounting firm” that it said had verified the account.

The gold bullion SKR was to be transferred to United Arab Emirates-based Sion with its acquisition of Cryptobontix in June.

Four weeks later, the situation surrounding Cryptobontix changed again, according to the July 25 statement from Dignity Holdings that announced it had acquired Cryptobontix and its tokens.

It said its subsidiaries, Dignity Mining Group LLC and Dignity Gold LLC, had “acquired Cryptobontix, a family of tokens backed by Sion Trading FZE’s gold in Dubai”.

According to the company, Dignity Gold owns the crypto tokens called dignity, namaste, honor and orectic, and will “continue the relationship with Sion Trading FZE through the safe keeping receipt for 395,000 kilograms of gold in addition to the tokens”.

The Royal Gazette has reached out to Sion for comment on the development, and to Dignity Holdings for further information, but has not received any response.

In December, Sion announced it had secured a precious metals contract with Don David Gold Mexico to purchase “metal dore” from its Oaxaca Mining Unit. It planned to allocate precious metals, including those bought from Don David Gold Mexico “to further enhance Arbitrade’s existing gold assets”.

Don David Gold Mexico is a wholly owned subsidiary of Colorado-based Gold Resource Corporation. Gold Resource said it quickly ended its relationship with Sion due to “red flags” that included questionable procedures, weight confirmations and payment of invoices.

Max Barber, owner of Sion, disputed that and said it was his company that was unsatisfied with the weight and purity documentation for the gold provided by the mine.

In reply, Jason Reid, CEO and president of Gold Resource, said his company has been selling gold for years to reputable buyers in the industry without encountering any of the issues claimed by Sion. He said Gold Resource has since closed out the deal and terminated its relationship with Sion.

Read More



Leave A Comment

More News

Business

Mussenden receives architectural award 2019-08-06 08:00:00Francis Mussenden, an intern with OBM International, has been awarded the Stanley G. Kennedy Architectural Award by the Institute of Bermuda Architect

Law firm expects rapid growth to continue 2019-08-06 08:00:00When Michael Hanson set about creating a law firm from scratch, he had a clear idea about how to approach the task.In November 2017, the Bermudian law

BFIS awards $340,000 of scholarships 2019-08-06 08:00:00The Bermuda Foundation for Insurance Studies has awarded $340,000 in scholarship funding to 16 students focused on careers in Bermuda's insurance sec

Barboza joins Aspen 2019-08-06 08:00:00Adam Barboza has been appointed director of corporate social responsibility at Aspen Insurance.The company says the role has been created to put addit

Butterfield shares down 3.96% on NYSE 2019-08-05 17:28:00Shares of Butterfield Bank fell $1.16, or 3.96 per cent, on the New York Stock Exchange, to close at $28.14.There were no trades on The Royal Gazette/

Deloitte Bermuda supports Pride Parade 2019-08-05 12:48:00Deloitte Bermuda is supporting and participating in Bermuda's first Pride Parade, which will be held on August 31.Deloitte is a signatory of the Unit

SOBC DARAG opens Bermuda office 2019-08-05 08:00:00SOBC DARAG has announced its new office in Bermuda as it expands its US and Bermudian operations.It is owned by DARAG Group investors, and is the prin

Essent Group announces its first dividend 2019-08-05 08:00:00Essent Group Ltd has reported net income of $136.4 million, or $1.39 per diluted share, for the second quarter.That is up on the $111.8 million for th

Rental minicar Hummers turn heads 2019-08-05 08:00:00Renters of electric minicars in Bermuda now have a more muscular option to consider.Rugged Rentals has launched, offering the Hummer HXT, an electric

Myron steps down as CEO of James River 2019-08-05 08:00:00Robert Myron has stepped down as chief executive officer of James River Group Holdings Ltd due to ill health caused by Lyme disease.He has taken on th

Island to host international shipping forum 2019-08-05 08:00:00Bermuda plays host to the TradeWinds International Shipping Forum in October.The two-day event aims to bring together decision-makers and influencers

Arbitrade COO leaves and leads new company 2019-08-05 08:00:00Arbitrade's chief operating officer Stephen Braverman has left the company and is leading a new business that owns the crypto tokens once controlled

Bernews.com » Business

Estera Appoints Resnik In Bermuda Office 2019-08-06 05:31:25Estera has appointed Damian Resnik as Client and Operations Director in its Bermuda office. A spokesperson said, “Estera, a leading global provi

LOM Financial Share Repurchase Programme 2019-08-06 05:26:39In a filing with the Bermuda Stock Exchange [BSX] LOM Financial Limited announced their 2019 share repurchase programme. The filing stated: “At

Bermuda Stock Exchange Report: August 5 2019 2019-08-06 05:15:58August 5 saw 0 shares trade on the Bermuda Stock Exchange. The BSX finished at 2,164.50, even on the day. There were 0 advances, 0 declines, and 56 re

Dive In Festival Taking Place In September 2019-08-05 18:43:39The Dive in Festival, a re/insurance industry initiative, is taking place in Bermuda and numerous other locations around the world from September 24 t

Deloitte Supports Bermuda’s First Pride Parade 2019-08-05 15:20:51Saying it is part of their “ongoing diversity and inclusion practices,” Deloitte Bermuda said they are “delighted to announce our su

Change In Management At James River Group 2019-08-05 10:05:26James River Group Holdings announced that due to ill health the Company’s Chief Executive Officer, Robert P. Myron, will step down as Chief Exec

Essent Reports Second Quarter 2019 Results 2019-08-05 10:00:44Bermuda-based Essent Group Ltd. reported net income for the quarter ended June 30, 2019 of $136.4 million or $1.39 per diluted share, compared to $111

Shipping Schedule: Week Starting August 3 2019-08-03 07:00:17The Department of Marine & Ports Services has released the weekly shipping schedule for ship arrivals commencing on Saturday August 3rd. On Thursd

AM Best Upgrades Credit Ratings Of PartnerRe 2019-08-03 06:00:37New Jersey-based international credit agency AM Best has upgraded the Financial Strength Rating [FSR] to A+ [Superior] from A [Excellent] and the Long

SOBC DARAG Launches Office In Bermuda 2019-08-02 08:27:52SOBC DARAG  announced the launch of its new office in Bermuda in a “significant expansion of its US and Bermudian operations.” &ldquo

Andrade Named Everest Chief Operating Officer 2019-08-02 08:19:47Juan C. Andrade has been named Everest Re Group Chief Operating Officer effective September 1, 2019. Effective January 1, 2020, Mr. Andrade will succe

Arch Capital To Acquire Barbican Group Holdings 2019-08-02 06:00:09Arch Capital Group Ltd. has entered into an agreement to purchase Barbican Group Holdings Limited from funds managed by Carlson Capital, a U.S.-based

Reuters: Business News

Lanxess, Bayer sell chemical park operator to Macquarie 2019-08-07 04:58:25German chemical groups Bayer and Lanxess have agreed to sell integrated chemical site operator Currenta to Macquarie Infrastructure and Real Assets

Oil sets new seven-month low on trade tensions 2019-08-07 04:51:19Oil prices slipped further on Wednesday, extending recent heavy losses as deepening Sino-U.S. trade tensions weighed on the outlook for the global eco

Cobalt, Africa setbacks shrink Glencore's first-half profit 2019-08-07 04:45:04Glencore reported a 32% drop in first-half core profit on Wednesday, sending its shares to their lowest since late 2016, and said it would suspend ou

SoftBank's profit blows past estimates on Vision Fund 2019-08-07 04:40:13Japan's SoftBank Group Corp raked in a better-than-expected quarterly operating profit as it saw a leap in investing gains from its $100 billion Vis

Saudi, Abu Dhabi showing 'high interest' in investing 2019-08-07 04:07:54SoftBank Group Corp founder and CEO Masayoshi Son said on Wednesday Saudi Arabia and Abu Dhabi are showing "high interest" in investing in the seco

Asian stocks turn lower on lingering trade war 2019-08-07 03:58:54Shares in Asia fell for an eighth straight session on Wednesday on lingering worries over the escalating U.S.-China trade war, but losses and nerves w

Toyota turns to AI startup to accelerate goal 2019-08-07 03:27:36Toyota Motor Corp has designs on making robot helpers for your home, and has enlisted a Japanese startup that specializes in artificial intelligence t

Tesla scrutinized by U.S. agency over Model 3 2019-08-07 03:07:55The U.S. National Highway Traffic Safety Administration (NHTSA) sent a cease-and-desist letter to Tesla Inc last year for not complying with the agen

Two U.S. senators raise privacy concerns over Facebook's 2019-08-07 03:02:43Democratic U.S. senators Edward Markey and Richard Blumenthal have written to Facebook Inc questioning whether there was a "worrying pattern" of po

Commerzbank's targeted rise in 2019 net profit 'ambitious' 2019-08-07 01:41:00Commerzbank on Wednesday posted net profit in the second quarter that was little changed from a year ago, helped by low taxes, but the German bank sa

Exclusive: China warns India of 'reverse sanctions' if 2019-08-07 01:20:16China has told India not to block its Huawei Technologies [HWT.UL] from doing business in the country, warning there could be consequences for Indian

COMAC pushes back C919 jet's China certification target 2019-08-07 00:44:36Commercial Aircraft Corp of China (COMAC) aims to obtain Chinese certification for its C919 jet in 2021, the company said, marking a delay from a prev

Christian Science Monitor |

China's yuan falls to lowest level in 11 2019-08-06 12:12:40Falling to nearly 14 cents to the dollar, the yuan's currency devaluation could become another tool in an ongoing trade war with the U.S. 

Who’s the boss? In worker-owned cooperatives, everyone is. 2019-08-06 12:12:40For 12% of U.S. workers, employee-owned co-ops offer a path to economic equality that resonates with socialists, liberals, and conservatives

Flagship stores lose luster, companies turn focus online 2019-08-06 12:12:40Gap, Tommy Hilfiger, and Polo Ralph Lauren have all left Fifth Avenue in New York. Other retailers are adapting to the changing ways customers shop.&n

Rate cuts with little risk? The unexpected taming 2019-08-06 12:12:40For the first time since the Great Recession, the Federal Reserve cut interest rates on Tuesday by a quarter of a point.

Why wealth and patience appear to go hand 2019-08-06 12:12:40Patience is often thought of in terms of social interactions. But the ability to bide one’s time also plays into national economics.

Trump has nothing to fear but fear itself. 2019-08-06 12:12:40Can a new budget deal, a rate cut, and no escalation in the China trade war keep recession at bay?

Why cattle and ecotourism combine on one Nebraska 2019-08-06 12:12:40Between tariffs and low grain prices, U.S. farmers are facing their toughest conditions in decades. Many are finding entrepreneurial ways to survive.&

Maine networks support young farmers, before they drop 2019-08-06 12:12:40Isolation and financial hardship take a toll on new farmers. In Maine, a program connects still-green farmers with mentors, know-how, and ea

Trade war slows Chinese economy to lowest rates 2019-08-06 12:12:40As economic growth falls to its lowest levels in more than a quarter-century, China is facing pressure to resolve an ongoing trade war with the U.S.&n

Around the world, investors value social, environmental impacts 2019-08-06 12:12:40Investors may value more than just financial profit. Markets for socially and environmentally mindful companies are opening across the world.

Farmers grow the food. But who’s helping new 2019-08-06 12:12:40Access to land is a major barrier to entering farming. One solution is land-link programs that pair landowners with those starting out.

Rural America faces housing shortage. How one town 2019-08-06 12:12:40Rent assistance is drying up for many rural housing projects. Construction costs keep rising. Yet many rural communities need to attract more workers.

Home Page

Reliance, BP announce new joint venture to set 2019-08-06 08:11:39The joint venture will build on Reliance's existing fuel retailing network of near 1,400 petrol pumps and an aviation fuel business

Kashmir debate LIVE: Farooq Abdullah says he's under 2019-08-06 07:35:39Jammu and Kashmir LIVE updates: The Lok Sabha will take up the resolution to abrogate Article 370 of the Constitution and the Jammu and Kashmir Reorga

Finance Ministry to issue norms for NBFC asset 2019-08-06 07:23:30The government has received a proposal from the Reserve Bank of India (RBI) on the draft modalities of the credit guarantee scheme, which would be ope

Kickstarting Kashmir's economy will be PM Narendra Modi's 2019-08-06 07:04:04Greater influx of labour and capital from rest of India will enable Kashmir and Kashmiris to come out of their economic rut

Jet employees seek interim financial relief till completion 2019-08-06 06:33:19The deadline for submission of initial bids under the insolvency resolution process ends on August 10

Ayodhya case: Hindu party seeks control of entire 2019-08-06 06:24:03The day-to-day hearing in the case commenced Tuesday after the efforts to arrive at an amicable settlement through mediation failed

MARKET WRAP: Indices trim gains, Sensex ends 277 2019-08-06 06:23:59All that happened in markets today

India Inc earnings disappoint, analysts see little hope 2019-08-06 06:17:45India's biggest lenders and automakers have all sounded warning bells over the slower growth in demand and consumption

AustralianSuper, Ontario Teachers to invest $1 bn each 2019-08-06 06:17:06The two fund managers committed $250 million each in the Master Fund and co-investment rights of up to $750 million each in future opportunities along

Govt raises cost of refinery project with Aramco 2019-08-06 06:13:02The project cost at the signing of a deal with Saudi Aramco in 2018 was pegged at $44 billion

Pidilite Industries gains 4% on good Q1 results, 2019-08-06 05:32:32The management remains cautiously optimistic in the medium term of delivering consistent, profitable volume-led growth.

IndiGo co-founder Rakesh Gangwal says feud still unresolved 2019-08-06 05:12:07BENGALURU (Reuters) - A co-founder of India's biggest airline IndiGo, Rakesh Gangwal, said reports that a truce had been brokered between him and ano


Disclaimer and Notice:WorldProNews.com is not responsible of these news or any information published on this website.