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

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

The Argentine Ministry of Justice took control of a sum of 3.5 million dollars (USDT), which is part of a broader investigation into Rainbowex, a trading company Ponzi 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 fraud, according to a report. report by iProUp.

While details remain unclear, the report said the investigation received crucial help from experts at Lemon, Argentina’s second-largest digital asset exchange, and blockchain investigation firms Chainalysis and Qlue, who provided data and technical support to help authorities trace the funds. and understand the flow of illicit crypto.

The Rainbowex investigation has already resulted in more than 15 raids across Argentina. At least four people have been arrested, but several others are still at large. Authorities are also working with Interpol to capture Malaysian individuals suspected of being behind the creation and operation of Rainbowex.

Rainbowex promised investors extraordinary returns of 1-2% per day, or an annual interest rate of almost 3,500%. It is estimated that tens of thousands of people in the city of San Pedro, Buenos Aires – where almost 70,000 people live – have suffered from this project.