Argentine Police Arrest 24, Seize Over $8M in Cryptocurrency

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Argentine authorities arrested 24 people and seized more than $8 million in cryptocurrency after executing 90 simultaneous raids across the country in what prosecutors called Operation “Fake Coins,” one of the largest crypto-related enforcement actions in the nation’s history.

The Buenos Aires prosecutors’ office said the operation targeted a network of fraud schemes that caused estimated losses of nearly ARS 3,000,000,000 (approximately $3 billion Argentine pesos). Authorities seized more than 8,000,000 USDT, nearly ARS 60,000,000 in cash, and 80 mobile phones along with computers and tablets.

Seized Stablecoins

8,000,000+ USDT

Buenos Aires prosecutors said authorities seized more than 8,000,000 USDT during Operation "Fake Coins."

The 90 raids and 24 arrests were carried out simultaneously across multiple Argentine jurisdictions, indicating a months-long coordinated investigation rather than a single isolated case.

Scope of Operation

90 raids / 24 arrests

The prosecutor notice said the operation involved 90 simultaneous raids and 24 arrests across the country.

How the fraud network operated through Binance and WhatsApp

Reporting from Infobae revealed that one branch of the fraud network converted victim funds into USDT through Binance’s peer-to-peer marketplace and then transferred the stablecoins to Venezuela using Binance Pay. The scheme relied on social engineering through messaging platforms to recruit and deceive victims.

Investigators identified more than 100 WhatsApp and WhatsApp Business activation codes tied to the network, suggesting the operation used disposable phone numbers at scale to contact potential victims. A separate branch of the case in the city of Azul yielded an additional seizure of 4,025 USDT from accounts located abroad.

The structure mirrors patterns seen in other recent crypto-linked criminal operations across Latin America and Southeast Asia, where stablecoins serve as the preferred vehicle for moving illicit funds across borders quickly.

Why this case signals a shift in Argentine crypto enforcement

The scale of Operation “Fake Coins,” with its 24 detainees and more than $8 million in seized digital assets, represents one of the most significant crypto enforcement actions in Argentina to date. According to the Buenos Aires prosecutors’ office, the seizure exceeded the value confiscated in the 2024 RainbowEx case, though this comparative claim has not been independently verified.

The case arrives at a pivotal moment for Argentina’s crypto regulatory framework. The country’s Comision Nacional de Valores (CNV) maintains a Registry of Virtual Asset Service Providers (PSAV), and as of May 26, 2025, all registration and cancellation requests must be submitted through the Tramites a Distancia platform under Resolution General No. 1058.

Both the prosecutor notice and media reports describe victims who relied on supposed financial advisers operating outside this registration framework. The gap between Argentina’s formal PSAV regime and the reality of unregistered operators exploiting retail investors is central to why this case matters for the country’s broader approach to crypto fraud prosecution.

What the seizure means for crypto users and platforms

The USDT-specific nature of the seized assets highlights how stablecoins have become the default instrument in cross-border fraud schemes. Unlike volatile tokens, USDT maintains a near-constant dollar peg, trading at $0.998 with a market capitalization exceeding $188 billion, making it attractive for actors seeking to move value without exchange rate risk.

The involvement of Binance’s P2P and Pay features in the alleged laundering chain raises compliance questions for centralized exchanges operating in Latin American markets. Platforms that facilitate peer-to-peer transfers face growing scrutiny from regulators who argue that P2P on-ramps create blind spots in transaction monitoring.

For individual crypto users in Argentina and the broader region, the case underscores the risk of engaging with unregistered advisers or platforms. The CNV’s PSAV registry exists specifically to let users verify whether a service provider is authorized, and the growing institutional infrastructure around digital assets makes regulatory compliance increasingly enforceable.

Key details to watch as the case develops

Several questions remain open as Argentine prosecutors move forward with the case. Formal charges against the 24 detained individuals have not yet been publicly detailed, and the specific fraud mechanisms, whether they involved fake investment platforms, Ponzi structures, or impersonation schemes, have not been fully disclosed.

The disposition of the seized USDT is another open question. Argentine authorities will need to determine how to handle more than 8 million stablecoins held in custody, including whether the assets will be liquidated, held as evidence, or eventually returned to victims.

Whether Binance will face any regulatory action or cooperation requests from Argentine authorities over the use of its P2P and Pay services in the alleged scheme is also unclear. Exchanges have increasingly adopted proactive compliance measures in Latin America, but enforcement cases like this one test those frameworks in practice.

The broader crypto market remains in a cautious posture, with the Fear & Greed Index sitting at 28, firmly in “Fear” territory. While this case alone is unlikely to move markets, it adds to a pattern of global enforcement actions that shape how regulators and platforms approach compliance in the stablecoin ecosystem.

FAQ about the Argentine crypto seizure

How many people were arrested?
Argentine authorities arrested 24 people during Operation “Fake Coins.”

How much cryptocurrency was seized?
Prosecutors reported seizing more than 8,000,000 USDT, along with nearly ARS 60,000,000 in cash.

Which country carried out the arrests?
The operation was conducted by Argentine law enforcement under the direction of the Buenos Aires prosecutors’ office, with 90 simultaneous raids across the country.

How did the fraud scheme work?
According to reports, the network used WhatsApp to contact victims, converted their funds into USDT through Binance P2P, and transferred assets abroad, including to Venezuela via Binance Pay.

Why is this case significant for crypto enforcement?
The seizure is notable for its scale, its focus on stablecoins rather than volatile tokens, and its exposure of gaps between Argentina’s PSAV regulatory framework and the reality of unregistered operators targeting retail investors.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.