In the Argentinian city of San Pedro, Buenos Aires, up to 20,000 people have reportedly invested in a USDT-themed “bogus crypto project” promoted by unknown actors. The lawyers representing some of the platform’s victims claim that the masterminds behind the project promised to double investors’ stake money within six weeks. These operators allegedly offered daily returns of up to 2% in US dollars, attracting investors who invested their savings, including retirees, in the platform.
The platform, known as RainbowEx, was said to be operated by a consortium named Knight Consortium, which claimed to be a foundation comprising a group of shareholders operating in the stock market. However, it was revealed that the firm was unregistered and lacked any legal endorsement or support. The first lawsuits against the platform were expected to reach the courts shortly, with the platform gaining popularity in the city over the past four years through word of mouth and viral marketing.
The investigation into the consortium has just begun, with accusations against two men who posed as CEOs of the platform at San Pedro events being Polish actors impersonating executives. Social media users familiar with the Argentinian crypto scene also raised concerns about the authenticity of the platform’s operators, with claims that the CEOs were actually actors hired to promote the platform. Additionally, investors were given tips from an Asian woman known as “La China,” leading residents to eagerly await her cryptocurrency investment advice.
La China’s tips reportedly brought activity in San Pedro to a standstill as investors followed her Telegram channel for guidance on buying and selling cryptocurrencies. The platform had allegedly duped an entire city into believing they were investing with the Wolf of Wall Street, further fueling skepticism about the legitimacy of the project. The involvement of actors hired to speak at events and speculation about La China potentially being a fictional AI creation raised further doubts about the platform’s credibility.
Investors who had been lured into the project by promises of high returns in dollars expressed concerns about their inability to withdraw funds from the platform, leading to fear and worry among those who had invested their savings. An investor named Mariano shared his experience of being enticed into the project by a friend who promised returns on his investment within a specific timeframe, highlighting the deceptive tactics employed to attract unsuspecting participants. As the legal proceedings continue and investigations unfold, the true extent of the scam and its impact on the residents of San Pedro remains to be seen.
