Argentine authorities arrest 24, seize over $8M in crypto during crackdown

Argentina just pulled off one of its largest crypto-related enforcement actions ever. On May 31, authorities executed 90 simultaneous raids across the country, arrested 24 people, and seized more than 8 million USDT in what they’ve dubbed Operation “Fake Coins.”

The targets: sophisticated fraud networks accused of running fake investment platforms that lured victims through WhatsApp messages promising high returns. The alleged damage: nearly ARS 3 billion in losses, which at current exchange rates puts this firmly in the category of major financial crime.

How the scheme worked

Unregistered financial advisers reached out to potential victims through WhatsApp and WhatsApp Business accounts, pitching what appeared to be legitimate investment opportunities. Investigators identified more than 100 activation codes linked to WhatsApp accounts used in the operation.

Once victims handed over their money, the funds were converted to USDT, Tether’s dollar-pegged stablecoin, through Binance’s peer-to-peer marketplace. From there, the crypto was transferred abroad, including to Venezuela.

The scale of the bust

Beyond the 8 million USDT, authorities also seized nearly ARS 60 million in cash and confiscated 80 electronic devices, including mobile phones and computers. Prosecutors have characterized the operation as surpassing the 2024 RainbowEx case, which had previously held the dubious honor of being Argentina’s most notable crypto fraud crackdown.

Argentina’s complicated relationship with crypto

Argentina has seen dramatic growth in retail adoption of digital assets, spurred by ongoing economic challenges and a pro-crypto position taken by President Javier Milei. In response, regulators implemented a registration regime for Virtual Asset Service Providers (PSAV) managed by the Comisión Nacional de Valores (CNV). The fact that these fraud networks operated outside that framework, using unregistered advisers and unlicensed platforms, suggests the registration system has meaningful blind spots.

What this means for investors

For traders and investors using P2P platforms, the practical takeaway is straightforward. Unregistered advisers reaching out via messaging apps with promises of guaranteed returns are, almost without exception, running a scam. No legitimate investment opportunity requires you to convert funds through a P2P marketplace and send them to an anonymous wallet abroad.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.