PANews reported on December 24, according to Bitcoin.com News, that the Argentine judicial system has ordered Tether to freeze $3.5 million in USDT assets related to the alleged pyramid scheme Rainbowex. This is the first time the Argentine judiciary has completed an asset freeze through Tether. It is reported that this action executed 22 search warrants, arrested 10 people, and issued an international red notice for two Malaysian nationals.
Rainbowex claims to provide high returns through cryptocurrency trading, but investigations show its operations are a closed loop, unrelated to public blockchains. When investors try to withdraw, the system refuses the operation, exposing the issue. The investigation is still ongoing, involving false advertising and even hiring actors to impersonate company executives.