Overview of the Scam in San Pedro
Lawyers in Argentina have reported that as many as 20,000 individuals in San Pedro, Buenos Aires, have fallen victim to a fraudulent cryptocurrency scheme centered around USDT (Tether). This “bogus crypto project” was reportedly promoted by relatively unknown figures, leading many local residents to invest their savings under false pretenses.
Promises of High Returns
According to the lawyers representing the victims, the masterminds behind this scheme lured investors with the promise of doubling their money within a mere six weeks. Furthermore, some investors were misled into believing they would receive daily returns between 1% and 2%, paid out in US dollars, which significantly heightened the appeal of this so-called investment opportunity.
Legal Action and Victims’ Responses
Adolfo Erdaire, a lawyer based in San Pedro, has stated that at least 50 victims are preparing to file official complaints against a company called Knight Consortium. Many of these victims invested their life savings, including a significant number of retirees who are now facing financial hardships due to the inability to withdraw funds from the platform, some of whom have gone three weeks without access to their money. As anxiety spreads among these investors, fear of financial ruin is becoming palpable.
Background on the RainbowEx Platform
According to reports, the Knight Consortium claims to operate a crypto platform and token known as “RainbowEx.” However, scrutiny reveals that this organization is unregistered and lacks any legal endorsement or protection. As a result, media outlets have indicated that lawsuits against the consortium are expected to be filed soon.
The Spread of the Scam
The platform began to gain traction in San Pedro approximately four years ago, initially through word of mouth before it went viral. As the situation developed, it began to divide the local community, with some residents still holding on to the illusion of legitimacy while others have come to realize the potential for a significant fraud.
Actors Impersonating Executives
Continuing their investigation, Erdaire accused two men fronting the consortium at local events of being Polish actors masquerading as CEOs. Social media users on platforms like X have corroborated this claim, sharing videos showing these men in acting roles rather than legitimate business dealings.
The Role of “La China”
Investors in San Pedro reported that an individual known as “La China” provided them with investment advice through a Telegram channel, which became increasingly influential. Her nightly tips regarding cryptocurrency transactions led to widespread anticipation, often causing the town’s activities to come to a halt as residents awaited her updates.
Questions About the Personas Behind the Scheme
While some experts speculate that “La China” may not even exist as a real person—potentially being an AI-generated persona—investigators believe they have identified an Indonesian actress resembling “La China” advertising her services online. This revelation further complicates the narrative surrounding the scheme and raises more questions about the integrity of those behind it.
Personal Accounts from Investors
Individual stories from victims paint a grim picture of deception. An investor named Mariano expressed how he was recruited by a friend who promised him payments in US dollars after an initial investment. He was convinced that converting his fiat pesos into USDT through the RainbowEx exchange was a safe bet, highlighting the effective manipulation that many investors experienced.
Conclusion
The unfolding situation in San Pedro serves as a cautionary tale about the risks associated with unregulated cryptocurrency investments. The combination of false promises, unregistered firms, and the exploitation of local trust highlights the need for greater education and regulation in the cryptocurrency space to protect individuals from such scams.