Argentina detains three suspected $1.25 million crypto scam initiators, possibly involving more than $100 million in money laundering

On May 11th, it was reported that two Chinese citizens and one Argentine citizen were detained for their involvement in an Argentine cryptocurrency investment scam. According to local media reports, the police cracked down on this operation, raided a supermarket that was used as a front for an illegal cryptocurrency mining operation, and seized dozens of graphics cards.

The Argentine citizen was identified as Fernando Barbatelli, who allegedly stole the identity of another citizen to offer cryptocurrency investment opportunities to a Chilean citizen and a Mexican citizen, and tricked victims into investing 20 bitcoins (worth $1.25 million).

Investigations revealed that one of the detained Chinese citizens had transferred over $100 million in funds using his cryptocurrency wallet in the past two years. Although the Chinese citizen was only charged for his involvement in the scheme, sources say that due to the scale of the operation, money laundering charges may also be included.