Cryptocurrency investment platform arbX is facing scam accusations after it told users it was “looking at a complete loss of funds.”

A series of updates following what arbX described as a “technological issue” told investors of its three separate funds that all its capital had gone.

“I regret to say we are looking at a complete loss of funds - they were all centralized to wallets for the school weekend away as we do not regard exchanges as safe nor did we want any fiat over the holiday,” founder Jonathan Weltman appeared to tell one investor in private, with the comments subsequently uploaded to Reddit.

arbX reportedly had around 100 customers, yet it remains unknown how much the service held in cryptocurrency.

Weltman subsequently added he intended to “restore” the funds without going into full detail as to how this would happen. He added the company had “made an error.”

“We made an error that effective mean't (sic) that we lost coins after a drive fail and backups were not correct,” he continued.

“I intend to find a way to make payments until the fund is restored. I am working on selling our IP as a way to fund this.”

The user involved was not convinced, calling Weltman someone “not to deal with” and querying “whether arbX was a scam all along.”

The funds used P2P “Bitcoin bank” BTCpop as a capital manager.

Cointelegraph has reached out to arbX via its website and will update readers in the event of a response.