A court in Argentina has ordered the confiscation of a cryptocurrency wallet containing $3.5 million of Tether's USDT stablecoin.

The Argentine Ministry of Justice seized control of $3.5 million (USDT) wallet, which is part of a larger investigation into Rainbowex trading Ponzi scheme. As part of the crackdown, authorities not only froze the USDT wallet, but also the cryptocurrency wallets and bank accounts of those involved in the alleged fraud, according to engadget. a report By iProUp.

While details are still unclear, the report notes that the investigation received crucial assistance from experts at Lemon, Argentina's second-largest digital asset exchange, and blockchain forensics companies Chainalogy and Qlue, which provided data and technical support to help authorities track the funds. And understand the flow of illicit cryptocurrencies.

The Rainbowex investigation has already led to more than 15 raids across Argentina. At least four people have been arrested, but several are still at large. Authorities are also working with Interpol to arrest individuals from Malaysia believed to be behind the establishment and operation of Rainbowex.

Rainbowex promised investors exceptional returns ranging from 1% to 2% per day, or an annual interest rate of approximately 3,500%. that it estimated Tens of thousands of people from the town of San Pedro, Buenos Aires - where nearly 70,000 people live - suffered from the scheme.