The RainbowEX platform , suspected of having set up a pyramid scheme in San Pedro, Buenos Aires, informed its investors of its decision to leave the country and requested a payment of US$88 to enable the withdrawal of the invested funds. Currently, two people have already been arrested in connection with the investigation.
The notice was spread in the last few hours through Telegram groups, where a woman known as “La China” used to advise investors on when to buy and sell cryptocurrencies. The message mentions an “important notice from Rainbow Exchange: Arrangements for withdrawal from the Argentine market and activation of accounts,” suggesting an agreement with local authorities.
The platform is reportedly set to officially withdraw from the Argentine market and undergo a comprehensive upgrade . “Dear Argentinian users: Pursuant to the agreement reached between Rainbow Exchange and local regulators, we will officially withdraw from the Argentine market and proceed with a comprehensive upgrade of the platform.
To facilitate this process, all Argentine and related accounts will be put into inactive status,” reads the message addressed to investors, amid the judicial investigation into a possible pyramid scheme.
It warns that “account activation will be automatically completed via a one-time payment of 88 USDT,” and warns that those who fail to close their accounts “in a timely manner” could face confiscation of their funds and potentially be charged with money laundering.
On Saturday, two men were arrested in the context of the investigation into a possible pyramid scheme in San Pedro . At the request of prosecutor Matías Di Lello, the Argentine Federal Police arrested Luis Pardo and Martín Liberati, both associated with the Over Cash financial company. The detainees were arrested at their homes and taken to the San Pedro police station, located 170 kilometers northwest of Buenos Aires.
The investigation began almost a week ago, after several affected people reported that they were prevented from withdrawing their money. In addition, the National Securities Commission (CNV) confirmed that RainbowEX was not authorized to operate in the country.
Knight Consortium, the foundation behind RainbowEX, was found to be unregistered and unauthorised, raising questions about the legitimacy of the business. Company representatives had promised a 1% daily return in dollars, but the situation became critical when they announced that their clients could not withdraw their invested funds.
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