Argentine authorities seized more than 8 million USDT in a large anti-fraud operation that targeted three separate criminal networks tied to crypto-related scams. The operation, called “Fake Coin”, involved coordinated raids at 90 locations on May 31. Investigators put total damage at about 3 billion Argentine pesos, while officers also confiscated 60 million pesos in cash and 80 technology devices.
Fake investment apps, account takeovers and phishing
Officials said the networks approached citizens through WhatsApp and WhatsApp Business with bogus investment offers, while presenting fake apps and platforms as if they belonged to legitimate financial institutions. Victims were led through what appeared to be a normal investment process, but prosecutors say the entire flow was designed as a fraud scheme.
The first group reportedly used a fake investment app listed on the Google Play Store. Operated by unlicensed advisers, the app received repeated payments from users who believed they were placing funds into real opportunities.
The second ring focused on hijacking WhatsApp accounts, then impersonating victims to carry out phishing attacks. Funds obtained through that method were converted into USDT on Binance’s P2P market and then moved to overseas wallets, mainly in Venezuela. During the investigation, authorities traced more than 100 WhatsApp activation codes, which they described as key tools for maintaining contact with targets.
San Isidro network linked to the biggest crypto seizure
Prosecutors said the third group, based in San Isidro, accounted for the largest haul of digital assets. This network allegedly relied on “infostealer” malware, covert software installed on victims’ systems to extract bank credentials and passwords.
Authorities said digital surveillance and blockchain analysis allowed investigators to trace stolen funds transfer by transfer to recipient addresses. According to official statements, all three networks tried to obscure the trail by using different crypto wallets. The funds were still tracked through the operation.
Charges include fraud and money laundering
Officials said the amount of crypto seized in this case exceeds the sum confiscated earlier in 2024 in the RainbowEx case. They also noted that crypto asset service providers cooperated with law enforcement during the seizure process, though no list of firms was disclosed.
Suspects are facing charges that include aggravated fraud, money laundering, membership in a criminal organization and violations of intellectual property rights. Court proceedings are still under way. A decision on whether the confiscated assets will be used to compensate victims has not yet been made.