LATAM Crypto Roundup: This Week’s Curated Stories

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BeInCrypto comprehensive Latam Crypto Roundup brings the most important news and trends from across Latin America. With reporters in Brazil, Mexico, Argentina, and more, we cover the latest updates and insights from the region’s crypto scene.

This week’s roundup includes AI initiatives in Argentina, Worldcoin’s expansion in Colombia, new crypto features by Brazil’s largest neobank, and other stories.

Argentina’s Javier Milei Meets with Open AI CEO Sam Altman

President Javier Milei met with OpenAI CEO Sam Altman during his first visit to San Francisco, aiming to position Argentina as a hub for artificial intelligence (AI). The hour-long meeting was viewed by its organizers as a crucial opportunity to attract new investments. This event occurs amid potential legal restrictions faced by technology entrepreneurs in the United States.

On his official X account, President Milei shared a photo with Altman, expressing his enthusiasm for the opportunities offered by a “libertarian” Argentina. Although Altman generally avoids formal contact with other leaders, he made an exception for Milei, attracted by his passionate defense of capitalism and economic freedom.

Milei and his team criticize European regulations for stifling innovation and view Argentina as fertile ground for technological growth. They believe the country could join the United States, China, and Europe as a leading hub for AI development, thanks to its commitment to economic freedom and minimal regulation.

Popular LATAM Arbitrage Platform Has Been Accused of Fraud

Solesbot, an arbitrage platform popular in Venezuela and Colombia, bills itself as an artificial intelligence-based trading bot that operates in cryptocurrency markets. Its proposal is simple: users deposit funds in a linked account and the bot is in charge of buying and selling cryptocurrencies in different exchanges taking advantage of small price differences to generate profits.

However, several members of the crypto community in Latin America have raised concerns, labeling it a Ponzi scheme. The pseudonymous developer CryptoSoftDev shared an extensive thread on his X account (formerly Twitter) detailing the platform’s operations.

First, he revealed that Solesbot operates on BSC. He then pointed out that when a user deposits USDT, it goes to one of five “collector” wallets on BSC. These wallets transfer the funds to a “distributing” wallet, intended to pay users requesting withdrawals.

“Reviewing in more detail the ‘COLLECTOR’ wallets, we noticed some infrequent operations, but of very high amounts, for example this one, 345 thousand $ in a single transfer to another wallet 4 days ago. BINGO, we have the ‘DRAINER’ wallet,” CryptoSoftDev pointed out.

CryptoSoftDev noted that the funds received by the “drainer” wallet are sent to Binance and then returned to Solesbot in the form of Ethereum (ETH), “totaling +$900k between them all.”

Despite analysts’ warnings, Solesbot continues to attract followers. Many investors claim it is possible to earn income through the platform, yet the red flags remain.

El Salvador Attracts Jack Dorsey-Backed Mining Pool

Ocean, a mining pool backed by former Twitter CEO Jack Dorsey, announced the establishment of its new headquarters in El Salvador’s capital, focusing on the business development of decentralized Bitcoin mining. The company will operate as an international Bitcoin mining hub from El Salvador, implementing a decentralization strategy by installing miners of all sizes to expand its mining reach.

Additionally, Ocean Mining will continue to support Bitcoin education in the country at locations such as El Zonte. A few months ago, Blockstream CEO Adam Back stated that El Salvador’s mining infrastructure would make it “an economic powerhouse,” describing Bitcoin as the evolution of “digital gold.”

Bitcoin mining in El Salvador has garnered global attention. Last January, the Bitcoin NGO “My First Bitcoin” received a new grant from Dorsey’s Block. The non-profit organization will use the funds to scale its digital platform and expand its offerings into new languages.

Worldcoin’s World ID Lands in Colombia

Despite international controversy, Worldcoin continues its expansion in Latin America by offering World ID verifications in Colombia. This introduction aligns with a growing interest in Proof-of-Humanity in the country and throughout the region.

Currently, there are ten locations with orbs, six in Bogota and four in Medellin. However, the project recently stated that “more orbs are coming,” indicating plans to increase the availability of these machines.

While World ID could address concerns about online authenticity and set a standard for privacy, it still faces significant legal and trust challenges. The company has encountered legal issues in Spain and Portugal, where operations have been banned, along with ongoing investigations in Argentina and Chile.

Brazilian Neobank Adds Support for BTC, ETH and SOL Transfers

Brazil’s largest neobank, Nubank, has introduced a new feature allowing transactions with Bitcoin, Ethereum, and Solana. While only these three cryptocurrencies are supported initially, more will be added soon.

Nubank reported a 1,500% increase in cryptocurrency transaction volume between March 2023 and March 2024. This new feature lets customers transfer their crypto assets whenever they want.

In a separate development, USDC stablecoin issuer Circle announced the launch of its infrastructure in Brazil, partnering with Nubank and BTG Pactual. This alliance will provide direct liquidity to retail customers and institutions through the Brazilian banking system, enabling the exchange and redemption of USDC.

As the Latin American crypto scene continues to grow, these stories highlight the region’s increasing influence in the global market. From Argentina’s ambitions in AI to Brazil’s expanding cryptocurrency services, LATAM is positioning itself as a key player in the tech world. Stay tuned for more updates and insights in next week’s roundup.

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