Argentine authorities have ordered Tether, the company behind the USDT stablecoin, to freeze $3.5 million in assets linked to an alleged pyramid scheme called Rainbowex. This marks one of the first instances of the formal Argentine justice system working with Tether to freeze assets. The operation against Rainbowex led to 22 search warrants being executed and 10 individuals being detained. Tether can block USDT by blacklisting the wallets holding the tainted currency, with companies like Lemon and Chainalysis providing technical support. Rainbowex posed as a platform using crypto transactions to generate high rewards for investors, but investigations revealed it to be a closed-loop system that refused to allow investors to withdraw their earnings. The investigation is ongoing, and authorities are cracking down on such pyramid schemes.



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