The Argentine Chamber of Fintech launched an alert after the events in San Pedro and other towns in Buenos Aires, where the operations of Rainbow Exchange and Knight Consortium are being investigated.
These platforms, according to multiple victims, They operate with characteristics of pyramid schemes: They promise exorbitant returns, recruit users on unregistered platforms, and handle alleged non-existent cryptocurrency operations on verifiable networks.
The Chamber warns, in a statement that reached the CriptoNoticias editorial office, about the risk of investing in unregulated platforms. They recalled that, in March 2024, the National Securities Commission (CNV) and the Financial Information Unit (UIF) established criteria for all Virtual Asset Service Providers (PSAV) to be registered, implement fraud prevention and cooperate with authorities.
“For this reason, from the Argentine Fintech Chamber we warn about the risk of funding unregulated platforms to make payment, savings, credit and investment decisions. As an industry, we will redouble our efforts to continue educating and raising awareness among users,” the entity indicated.
Alleged pyramid scam leaves thousands affected
The case of Knight Consortium and Rainbow Exchange has alarmed the community. Through Telegram, those responsible for Knight Consortium reported that their clients’ savings would be frozen for 14 days.
While Justice investigates, the Rainbow Exchange platform announced the suspension of money withdrawals, which intensified the alarms. The message received by investors explained: “Recently, due to misleading local media reports, Argentine regulators decided to intervene.”
“We will cooperate fully with the investigation, which is expected to last 14 business days. During this period, user operations will not be affected, but we will temporarily suspend withdrawal services,” they added.
It is estimated that about 20,000 San Pedro residents, almost a third of the population, invested in Rainbow Exchange hoping to multiply your money. The Argentine Chamber of Fintech and its associates are working to strengthen their user service mechanisms and the dissemination of educational content to prevent and protect against scams of this type.
The recent alert about cryptocurrency scams in Argentina, such as that of Rainbow Exchange and Knight Consortium, occurs in a context where the country has established itself as a leader in Latin America in the use of cryptocurrencies, according to a Chainalysis report for 2024.
Argentina surpassed Brazil in value transferred with digital assets, reaching $91.1 billion between June 2023 and June 2024, driven by the adoption of stablecoins as a refuge against inflation and the devaluation of the local currency, as reported by CriptoNoticias.
This article was created using artificial intelligence and edited by a human Editor.