Argentine authorities have executed one of the country's largest crypto enforcement actions. On May 31, agents carried out 90 simultaneous raids, arresting 24 individuals and seizing over 8 million USDT in a operation dubbed "Fake Coins."
The targets were sophisticated fraud networks running fake investment platforms, luring victims via WhatsApp with promises of high returns. The alleged losses total nearly ARS 3 billion.
How the scheme worked
Unregistered financial advisers contacted potential victims through WhatsApp, pitching fake investment opportunities. Once victims transferred funds, the money was converted to USDT on Binance's peer-to-peer marketplace and sent abroad, including to Venezuela.
What was seized
Beyond the crypto, authorities confiscated nearly ARS 60 million in cash and 80 electronic devices-phones and computers. Prosecutors say this bust surpasses the 2024 RainbowEx case, previously Argentina's largest crypto fraud crackdown.
What this means for investors
This case highlights persistent risks for crypto investors in Argentina. While President Javier Milei has embraced digital assets and regulators have established a registration system for Virtual Asset Service Providers, scams continue to operate outside these frameworks. The takeaway: unsolicited investment offers via messaging apps promising guaranteed returns are almost always fraudulent.