The detainment of two Chinese and one Argentine national involved in a $1.25 million crypto investment scam led to the discovery of a $100 million operation in Argentina. According to local reports, the investigation resulted in the raid of a supermarket that was used as a facade for conducting illegal cryptocurrency mining operations, with dozens of graphics cards confiscated.
Crackdown on Crypto Investment Scam Leads to Massive Raids in Argentina: $100 Million Operation Uncovered
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Authorities Disband $1.25 Million Crypto Investment Scam in Argentina, Uncover $100 Million Operation
Two Chinese nationals and an Argentine citizen were detained on March 8 due to their participation in a crypto investment scam in Argentina. According to local reports, the police cracked down on the operation, raiding a supermarket used as a facade for an illegal cryptocurrency mining farm and seizing dozens of graphics cards.
The Argentine citizen was identified as Fernando Barbatelli, who allegedly usurped the identity of another citizen to offer a cryptocurrency investment opportunity to a Chilean and a Mexican citizen. Barbatelli convinced the Chilean national that he was an old acquaintance turned cryptocurrency investor and got 20 bitcoin (valued at $1.25 million) deposited for these investments.
Authorities tracked the funds and found that funds were coming to the wallet of one of the Chinese nationals detained. The crackdown had the support of Binance and Lemon, two cryptocurrency exchanges that offered the information required and professionals to analyze the scheme’s information.
Investigations discovered that one of the Chinese nationals detained had moved over $100 million using his cryptocurrency wallets during the last two years. While the Chinese nationals were just charged for involvement in the scheme, sources state that the accusation might evolve to include money laundering charges due to the size of the movements.
Simultaneously, a major operation seeking to curb the acquisition of illegal crypto assets with funds obtained from malware attacks was executed, with 64 raids in the province of Buenos Aires and the whole country. Over 500 officers of the Federal Argentine Police participated in what local media has called the largest hit on illegal cryptocurrency movements in Argentina.
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