Argentine Police Seize $8M USDT in 90-Raid Operation

Argentine authorities arrested 24 people and seized more than 8,000,000 USDT (roughly $8 million) in a single coordinated enforcement action. The Buenos Aires prosecutors’ office executed 90 simultaneous raids across multiple jurisdictions under Operation “Fake Coins,” one of the largest crypto-related police actions in the country’s history.

The scale of the seizure – which also includes nearly ARS 60,000,000 in cash, 80 mobile phones, and multiple computers and tablets – surpasses the amount confiscated in the 2024 RainbowEx case, according to prosecutors. That claim has not been independently verified. More important than the headline number is what the operation reveals about how stablecoin fraud works, where the regulatory gaps are, and what it means for exchanges operating in Latin America.

The Fraud Mechanism: WhatsApp Social Engineering and Binance P2P

Investigators identified a fraud network that relied on social engineering through WhatsApp to recruit victims. More than 100 WhatsApp and WhatsApp Business activation codes were tied to the network, indicating systematic use of disposable phone numbers to contact potential targets.

Once victims were convinced to invest or transfer funds, the scheme converted their money into USDT through Binance’s peer-to-peer marketplace. The stablecoins were then transferred to Venezuela using Binance Pay. This chain – social engineering via messaging app, P2P on-ramp, stablecoin cross-border transfer – mirrors patterns seen in crypto-linked criminal operations across Latin America and Southeast Asia.

A Separate Branch in Azul

A related part of the case in the city of Azul yielded an additional seizure of 4,025 USDT from accounts located abroad. That detail confirms the network operated across multiple Argentine jurisdictions and maintained foreign accounts, likely to complicate recovery.

Regulatory Gap: PSAV Registry vs. Unregistered Operators

Argentina’s Comision Nacional de Valores (CNV) maintains a Registry of Virtual Asset Service Providers (PSAV). As of May 26, 2025, all registration and cancellation requests must be submitted through the Tramites a Distancia platform under Resolution General No. 1058.

The gap between this formal regime and reality is central to the case. Both the prosecutor notice and media reports describe victims who relied on supposed financial advisers operating outside the registration framework. The PSAV registry exists specifically to let users verify whether a provider is authorized. Retail investors in practice often do not check.

Why USDT Is the Default Instrument for Cross-Border Fraud

The USDT-specific nature of the seized assets is not coincidental. Unlike volatile tokens, USDT maintains a near-constant dollar peg, trading at $0.998 with a market capitalization exceeding $188 billion. That stability makes it attractive for actors seeking to move value across borders without exchange rate risk.

Stablecoins are now the default instrument in cross-border fraud schemes because they clear instantly on the blockchain, are widely accepted by centralized exchange on-ramps, and evade the slower monitoring of traditional bank wire systems.

Key Figures from Operation “Fake Coins”

Metric	Value
Arrests	24
Simultaneous raids	90
Seized USDT	8,000,000+
Seized cash (ARS)	~60,000,000
Seized mobile phones	80
WhatsApp activation codes linked	100+
Additional USDT seized in Azul	4,025

Metric

Value

Arrests

Simultaneous raids

Seized USDT

8,000,000+

Seized cash (ARS)

~60,000,000

Seized mobile phones

WhatsApp activation codes linked

100+

Additional USDT seized in Azul

4,025

Open Questions: Charges, Asset Disposition, and Binance’s Role

Formal charges against the 24 detained individuals have not yet been publicly detailed. The specific fraud mechanisms – whether they involved fake investment platforms, Ponzi structures, or impersonation schemes – have not been fully disclosed. That matters for assessing whether the network had any connection to known scam-as-a-service operations.

Custody of Seized USDT

Argentine authorities now hold more than 8 million USDT in custody. The disposition is an open question: will the stablecoins be liquidated, held as evidence, or eventually returned to victims? Legal frameworks for handling crypto seizures remain uneven across jurisdictions. This case could set a precedent for how Argentina treats stablecoin confiscations.

Binance Compliance Under Scrutiny

The involvement of Binance’s P2P and Pay features in the alleged laundering chain raises compliance questions for centralized exchanges. Platforms that facilitate peer-to-peer transfers face growing scrutiny from regulators who argue that P2P on-ramps create blind spots in transaction monitoring. Whether Binance will face any regulatory action or cooperation requests from Argentine authorities over the use of its services is unclear. Exchanges have increasingly adopted proactive compliance measures in Latin America. Enforcement cases like this one test those frameworks in practice.

Enforcement Pattern: What It Means for Crypto Markets and Compliance

The broader crypto market remains in a cautious posture. The Fear & Greed Index sits at 28, firmly in “Fear” territory. This case alone is unlikely to move market sentiment. It adds to a pattern of global enforcement actions targeting stablecoin infrastructure.

Recent operations – including US Seizes $1B in Iranian Crypto: Operation Escalates and the SEC Sues Texas Man Over $12.3M Crypto AI Ponzi Scheme – share a common thread: regulators are targeting the financial plumbing of fraud, not just the fraudsters themselves. That means centralized exchanges, P2P platforms, and stablecoin issuers face an increasing burden of proof to demonstrate they are not facilitating illicit flows.

What Would Reduce the Risk

If Argentine prosecutors release detailed charges and evidence, the market gains clarity on the fraud type and can adjust compliance controls accordingly.

If Binance voluntarily discloses cooperation with Argentine authorities, that reduces the risk of a unilateral regulatory crackdown on P2P services in the region.

If the CNV expands real-time verification of PSAV registrants, retail investors have a better tool to avoid unregistered operators.

What Would Make It Worse

If prosecutors allege that Binance’s P2P system knowingly allowed the transfers without proper KYC, that could trigger regulatory action against the exchange in Argentina or wider Latin America.

If victims remain uncompensated and the seized USDT is not returned, public pressure may lead to broader restrictions on stablecoin usage in Argentina.

If the case reveals that the network operated across multiple exchanges using similar P2P methods, the enforcement pattern widens.

For individual crypto users in Argentina and the broader region, the practical takeaway is straightforward: verifying whether a service provider is registered with the CNV’s PSAV registry is no longer optional. The institutional infrastructure around digital assets is growing. Regulatory compliance is becoming enforceable. The same crypto market analysis that applies to global trends now has a local enforcement component that traders and investors cannot ignore without assuming real legal risk.