A court in Argentina has ordered the seizure of a crypto wallet containing $3.5 million in Tether’s USDT stablecoin.
Argentina’s Justice Department has taken control of a $3.5 million (USDT) wallet that is part of a larger investigation into Rainbowex, a Ponzi trading scheme. According to a report by iProUp, 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.
While details remain unclear, the report says the investigation received crucial help from experts at Lemon, the second-largest digital asset exchange in Argentina, and blockchain forensics firms Chainalysis and Qlue, which provided data and technical assistance, to help authorities trace 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, but several others are still on the run. Authorities are also working with Interpol to capture individuals from Malaysia believed to be behind the creation and operation of Rainbowex.
Rainbowex promised investors exceptional returns of 1 to 2% per day or an annual interest rate of almost 3,500%. It is estimated that tens of thousands of people from the city of San Pedro in Buenos Aires – home to nearly 70,000 people – have suffered under the plan.
