Argentina freezes $3.5m in USDT amid investigation into Rainbowex Ponzi scheme: report

A court in Argentina has ordered the seizure of a crypto wallet containing $3.5 million in Tether’s USDT stablecoin.

Argentina’s Department of Justice has seized control of a $3.5 million (USDT) wallet that is part of a larger investigation into Rainbowex, a pyramid scheme. As part of the crackdown, authorities froze not only the USDT wallet but also the cryptocurrency wallets and bank accounts of those involved in the alleged scam, according to a report by iProUp.

While details remain unclear, the report notes that the investigation received significant assistance from experts at Lemon, the second-largest digital asset exchange in Argentina, and blockchain forensics firms Chainalytics and Qlue, which provided data and technical support to help authorities track the funds. and understand the flow of illicit crypto.

The Rainbowex investigation has already led to more than 15 raids across Argentina. At least four people have been arrested, while many others remain at large. Authorities are also working with Interpol to capture Malaysian individuals believed to be behind the creation and operation of Rainbowex.

Rainbowex promised investors extraordinary returns of 1% to 2% per day, or an annual interest rate of approximately 3,500%. It is estimated that tens of thousands of people from the town of San Pedro in Buenos Aires, where approximately 70,000 people live, were victims of this plan.