đ„ ATTENTION ARGENTINA! The Rainbow Exchange platform, also known as Knight Consortium, has stopped payments and withdrawals of money to thousands of investors in Argentina. The decision has sparked a storm of controversy, with rumors of a possible pyramid scheme putting the entire country on alert.
What's going on?
Rainbow Exchange, which promised returns of up to 2% per day in dollars, has temporarily suspended all transactions for 14 business days. The company claims that this decision was necessary to cooperate with an ongoing investigation by Argentine regulators. The underlying reason: they accuse the platform of operating as a pyramid scheme in which newer investors finance the profits of earlier ones.
The signs of fraud emerged after users on social media, especially on the X platform (formerly Twitter), began to question the promised benefits. It was even revealed that two men who had presented themselves as executives of the platform at a conference in Buenos Aires were Polish actors hired to pose as official representatives of the company.
Case in Numbers
The town of San Pedro (Buenos Aires) is at the centre of the controversy, with reports that between 15,000 and 20,000 people of its population of 70,000 have invested in the platform. This has generated a wave of panic among local investors, who have not yet filed formal complaints, but the investigation is already underway. Maximiliano Firtman, an Argentine programmer, was one of the first to warn about the scheme on social media, comparing it to a simulation where âeveryone believes they are the wolves of Wall Street.â
What does this mean for investors?
According to Rainbow Exchange's latest statement, if the authorities do not allow them to continue operating, they will develop an orderly withdrawal plan to return the funds to their users. However, uncertainty persists, and many fear that their money could disappear completely.
