By lutch 
In a significant move against fraudulent crypto operations, Argentine authorities have ordered the freezing of $3.5 million worth of Tether’s USDT stablecoin. This action is part of a broader investigation into Rainbowex, a platform suspected of running a Ponzi scheme that has impacted thousands of investors.
The operation, which led to the execution of 22 search warrants and the detention of 10 individuals, underscores Argentina’s commitment to combating financial crimes within the cryptocurrency sector. The funds were seized from a crypto wallet directly linked to Rainbowex, as reported by iProUp. The investigation was supported by technical expertise from Lemon, Argentina’s second-largest digital asset exchange, and blockchain forensic firms like Chainalysis and Qlue, who aided in tracing the illicit funds.
Rainbowex had promised investors daily returns of 1% to 2%, which translates to an astronomical annual rate of nearly 3,500%. The scheme primarily targeted residents of San Pedro, Buenos Aires, with estimates suggesting tens of thousands were affected. The platform operated by creating an illusion of legitimate profits, using funds from new investors to pay returns to earlier ones, a classic hallmark of Ponzi schemes.
The seizure of USDT is particularly notable as it represents one of the first instances where Argentine authorities have directly requested Tether to freeze assets in stablecoin form, highlighting the evolving landscape of cryptocurrency regulation and enforcement in the country. This case also involves international cooperation, with warrants issued for two more individuals outside Argentina.
This operation not only aims to recover funds for defrauded investors but also sends a strong message to potential fraudsters in the crypto space about the risks of engaging in such schemes. As the investigation continues, the focus will be on how these seized assets will be managed and whether they can be returned to the victims of the scam.
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