Argentina Seizes $3.5 Million in USDT Stablecoin Amid Rainbowex Ponzi Scheme Investigation

A court in Argentina has ordered the seizure of a crypto wallet containing $3.5 million in Tether’s USDT stablecoin, as part of a larger investigation into the alleged Ponzi scheme, Rainbowex.

Investigation and Seizure

The Argentine Justice Department has taken control of the $3.5 million USDT wallet, as well as the cryptocurrency wallets and bank accounts of those involved in the alleged fraud. The investigation has received crucial help from experts at Lemon, the second-largest digital asset exchange in Argentina, and blockchain forensic firms Chainalysis and Qlue.

These experts provided data and technical support to help authorities trace the funds and understand the flow of the illicit crypto. The investigation has already led to more than 15 raids across Argentina, with at least four people arrested, but several others are still on the run.

Rainbowex Ponzi Scheme

Rainbowex promised investors extraordinary returns of 1% to 2% per day, or an annual interest rate of nearly 3,500%.

It is estimated that tens of thousands of people from the town of San Pedro, Buenos Aires, suffered from the scheme. Authorities are also working with Interpol to capture individuals from Malaysia who are believed to have been behind the creation and operation of Rainbowex.

Protecting Yourself from Ponzi Schemes

When investing in cryptocurrencies, it’s essential to be cautious of schemes that promise unusually high returns. Here are some tips to help you avoid falling victim to a Ponzi scheme:

  • Research the investment thoroughly and understand the risks involved.
  • Be wary of investments that promise guaranteed high returns with little to no risk.
  • Verify the legitimacy of the investment and the company behind it.
  • Never invest more than you can afford to lose.

Stay up-to-date with the latest cryptocurrency news and trends on Global Crypto News. Learn more about USDT stablecoin and how to protect yourself from Ponzi schemes in the world of cryptocurrency.

Post Views: 1