Summary:Argentina’s justice system just dropped the hammer on Rainbowex, a Ponzi scheme promising wild returns. Authorities froze $3.5 million in USDT and are chasing down suspects linked to the scam, which reportedly scammed thousands of investors in Buenos Aires.
$3.5M Wallet Freeze: Crypto Justice Goes Hard
Argentina’s Justice Department has swooped in and taken over a Tether (USDT) wallet holding $3.5 million. This is just the tip of the iceberg in a bigger takedown of Rainbowex, a Ponzi scheme promising unreal daily returns of up to 2%. Alongside the USDT, authorities froze multiple wallets and bank accounts tied to the scam, according to iProUp.
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Big brains from Lemon (Argentina’s second-largest crypto exchange), Chainalysis, and Qlue helped trace the shady transactions and connect the dots. Their expert sleuthing gave investigators the crypto receipts they needed to act fast.
Raids, Arrests, and Sky-High Promises
The Rainbowex crackdown has already seen over 15 raids across Argentina, with at least four arrests made so far. The feds aren’t stopping there they’ve called in Interpol to track down key players in Malaysia who allegedly masterminded the scheme.
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Rainbowex pitched insane returns, turning heads with promises of 1-2% daily gains nearly 3,500% annually. The scam reportedly hit tens of thousands in San Pedro, a town of 70,000. Locals now face financial chaos, while authorities race to clean up the mess.