Argentine police seized 8 million USDT and arrested 24 suspects in nationwide fraud crackdown. Operation exposed three networks using fake apps, WhatsApp hacks, and malware.
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Argentine authorities on May 31 executed 90 coordinated raids across the country under Operation Fake Coins. The operation resulted in 24 arrests and the seizure of more than 8 million USDT, surpassing the amount confiscated in the widely publicized RainbowEx case in 2024. Prosecutors uncovered nearly ARS 3 billion in alleged investor losses tied to three separate fraud networks that used fake trading apps, WhatsApp hijacking, and malware-laced piracy software.
The scale of the enforcement action marks one of the largest crypto-related crackdowns in Argentina. For crypto users and platforms operating in the country, the case exposes the specific channels fraud operators exploit and the growing capacity of law enforcement to trace digital assets.
Prosecutors announced the operation on May 31 after months of investigation. The raids targeted locations across multiple provinces. Authorities seized almost ARS 60 million in cash and 80 electronic devices, including computers and mobile phones. Private virtual asset service providers cooperated to freeze digital assets, though authorities did not disclose the names of all entities involved.
The investigation connected more than 100 complaints to the alleged fraud schemes. Victims were recruited through WhatsApp and WhatsApp Business, where operators promised attractive returns and directed users toward fraudulent platforms disguised as legitimate financial services.
One network distributed a fraudulent trading application through the Google Play Store. Unregistered advisers guided investors through multiple deposits while presenting the platform as a legitimate investment service. Victims deposited funds that were then siphoned through the fake interface.
A second group focused on compromising WhatsApp accounts and impersonating contacts. Investigators found that stolen funds were converted into USDT through Binance’s peer-to-peer marketplace. The assets were then transferred to overseas accounts, including destinations linked to Venezuela. Authorities identified more than 100 activation codes associated with WhatsApp accounts used in the scheme. The codes were used to maintain fraudulent communications and contact victims.
The largest crypto seizure came from a third organization based in San Isidro. Prosecutors alleged that the group distributed piracy applications embedded with infostealer malware designed to steal passwords and banking credentials. Blockchain analysis enabled authorities to trace transactions connected to the stolen funds, leading to the recovery of significant cryptocurrency holdings the group had amassed.
The recovered 8 million USDT exceeded the amount confiscated during the RainbowEx case in 2024. Prosecutors said private virtual asset service providers assisted with freezing digital assets. The cooperation suggests that exchanges operating in Argentina face increasing expectations to support law enforcement requests.
The investigation uncovered nearly ARS 3 billion in alleged losses. Authorities also seized almost ARS 60 million in cash. For crypto platforms, the largest exposure is reputational and regulatory. Binance’s P2P marketplace was the conduit for moving stolen funds. While Binance was not accused of wrongdoing, the case creates a precedent for prosecutors to examine how peer-to-peer services facilitate money laundering. Exchanges operating in Argentina may face heightened due-diligence requirements from regulators.
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Suspects now face allegations that include aggravated fraud, money laundering, illicit association, and intellectual property violations. Authorities have not yet determined how the seized USDT will be handled. It remains unclear whether recovered assets can be directed toward compensating affected victims.
The case offers concrete lessons for traders and investors. The channels fraud operators use – fake apps on verified stores, compromised WhatsApp accounts, and P2P markets – remain active. A skeptical approach to unsolicited investment offers on messaging platforms is the most effective risk control. For those operating in Argentina, verifying platform registration with regulators and avoiding peer-to-peer transfers from unknown counterparties can reduce exposure.
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Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.