According to Deep Tide TechFlow, on December 24, as reported by Bitcoin.com, Argentinian judicial authorities have ordered Tether to freeze $3.5 million USDT related to the alleged pyramid scheme Rainbowex. Law enforcement simultaneously launched a large-scale operation, executing 22 search warrants and arresting 10 suspects, while issuing a red notice for two Malaysian suspects. This marks the first time the Argentinian judicial system has directly collaborated with Tether to execute an asset freeze order.
The investigation shows that Rainbowex lures with high returns from cryptocurrency trading while actually operating a closed system disconnected from the public blockchain. Law enforcement disclosed that the organization even hired actors to impersonate executives at events, including Polish actor Maurycy Lyczko, who admitted to receiving $1,500 to attend an awards ceremony. Organizations such as Lemon Exchange and Chainalysis provided technical support for this operation.