A massive cryptocurrency scam has unfolded in San Pedro, Buenos Aires, Argentina, reportedly affecting up to 20,000 investors. The scheme, centered around a fraudulent USDT-themed project, was promoted by little-known actors posing as legitimate cryptocurrency experts.Â
Lawyers representing some of the victims claim that the masterminds behind the operation promised to double investors’ stake money within six weeks, with some even offered daily returns of 1% to 2% paid in US dollars.
The scale of this deception is staggering, with many residents, including retirees, reportedly investing their life savings into what they believed was a legitimate crypto exchange.
Legal Actions and Victim Response
The legal repercussions of this scam are beginning to unfold. San Pedro-based lawyer Adolfo Erdaire has stated that at least 50 victims are preparing to file official complaints against a firm named Knight Consortium.
These crypto lawsuits are expected to reach the courts by the end of the week. The situation has created a division within the community of San Pedro, with some residents still clinging to the hope that the platform might be legitimate.
However, the reality is becoming increasingly clear as many investors have been unable to withdraw their funds for weeks, turning their initial worry into fear. This case highlights the vulnerability of investors to sophisticated cryptocurrency scams and the need for increased awareness and regulation in the sector.
Details of the Fraudulent Operation
The scam operated under the guise of a crypto platform and token called “RainbowEx,” managed by the Knight Consortium. This entity claimed to be a foundation comprising a group of shareholders operating in the stock market and attracting global retail investors.
However, investigations have revealed that the firm is not registered and lacks any legal endorsement or support. The scam gained popularity in San Pedro over the past four years, initially spreading by word of mouth before going viral.
The operation’s facade was bolstered by elaborate marketing tactics, including events featuring actors impersonating CEOs. Social media evidence suggests that these “CEOs” were actually Polish actors, with videos circulating showing them in TV dramas.
Additionally, investors received advice from an individual known as “La China,” purportedly an Asian woman offering investment tips.
Warnings and Ongoing Investigation
As the investigation into the Knight Consortium begins, lawyers are working to uncover who hired the actors to speak at events in San Pedro. The case serves as a stark reminder of the risks associated with unverified cryptocurrency investments.
Authorities and legal representatives are urging citizens to take immediate action to protect their savings if they have received financial advice from the individuals involved in this scheme.
This incident shows the importance of due diligence in cryptocurrency investments and the need for investors to be wary of promises of unrealistically high returns.
As the case unfolds, it is likely to have significant implications for cryptocurrency regulation and investor protection measures in Argentina and potentially beyond.