Argentina Court Orders the Seizure of $3.5 Million In USDT

A court in Argentina has ordered the Argentine Justice Department to seize around $3.5 million in USDT as part of an ongoing investigation in Rainbowex. According to reports, Rainbowex is a Ponzi scheme and apart from the crypto assets, authorities have seized wallets and bank accounts of those who are believed to be involved.

The Rainbowex Investigation is Still Ongoing

The investigation has resulted in more than 15 raids across Argentina and so far, four people have been arrested. Individuals from Malaysia are believed to be the orchestrators of the Rainbowex scheme. Authorities in Argentina are currently working with Interpol to capture them.

Although there are very few details regarding the investigation, reports state that authorities had a lot of help from Lemon, Argentina’s second-largest crypto exchange platform. Forensic firms like Qlue and Chainalysis are also believed to have provided crucial technical support to the investigation.

Upon its creation, Rainbowex promised investors 1-2% returns per day. Annual interests went as high as 3,500%. There’s no exact data on the number of people who decided to invest in the fraudulent scheme, but some estimate that more than 10,000 residents from San Pedro, Buenos Aires, have participated in it.

Argentina is Working on Making the Crypto Market Safer

Back in June, Argentinian authorities announced that they’ll be rolling out a national registry for crypto exchanges. After the National Securities Commission launched the Virtual Asset Service Provider registry, more than 100 individuals and legal entities filed applications.

Those that would receive the green light would be able to continue their operations in Argentina. According to Roberto E. Silva, the CNV chair, the goal of this development is to make the crypto market safer and prevent terrorism financing and money laundering.

However, the local crypto community expressed its concerns. Manuel Ferrari, the Money On Chain protocol co-founder, stated that the registry is a bad idea and stated that cryptocurrencies such as Bitcoin are “money, not a security.”