It was in Argentina, in a small town named San Pedro, where people started to dream of being rich. Every week “La China”, a term for a Chinese woman, came by to make the city’s inhabitants a little richer.
It started when a resident of the city appeared in an expensive outfit at a local barbecue. He told the attentive listeners that a woman had made him rich in stone. He called her “La China” and she would have everyone who listened to her sink in wealth. But that went a little differently.
The structure of the crypto fraud
In the city with 70,000 inhabitants, more and more people knew from La China. She appeared every weekday on the Rainbowex Telegram page, a crypto exchange.
She then recommended a certain one Memecoin Buying with little liquidity and selling it again at a higher price, whatever happened. This gained trust because they made money.
Although La China remained anonymous, the residents, cars, motorcycles and other things began to buy from their profits.
Classic signs of a pyramid game began to show, but greed often wins through insight. Rainbowex investors received 20 percent of the income from new members who introduced them on the platform. Participants also received two percent interest per day. It couldn’t be more classic!
At some point this story had spread all over the city, and it was quiet in the streets around 9:00 p.m. German time. At that time it was announced which cryptocurrency she for your next Cash grave should buy. Around 16,000 inhabitants had put a total of millions of dollars in Rainbowex.
The culture of hope in Argentina
In this country, where inflation is booming, such practices fall on fertile soil. The $ Libra affair is still fresh in the residents. Citizens feel abandoned by politics and are quickly there when suddenly there is a chance to improve their lives.
So Max Higgins arrived in San Pedro with a helicopter, flanked by alleged Arab investors. He claimed that he would create a Disney theme park, with work and tourism income for everyone. 5000 people fell in and everyone lost their money. The problem is that hope has been lost in these regions and everyone who gives a little hope is believed pretty quickly.
After this dizziness it was time for Rainbowex. The ‘company’ set up a fund for boards and sports teams with rainbowex income. This increased credibility, because charity is not carried out by fraudsters.
Polish actors were involved in a gala to celebrate the most successful investors, although La China was naturally prevented. These Poles were introduced as Americans, but were exposed by facial recognition.
Lift off briefly, then pay out
Participation in the project was easy. You had to download some software, your Argentine pesos in Tether (USDT) Exchange and can start trading. The cult was so strong that football games were briefly interrupted in order to be able to act. People started selling possessions in order to be able to invest more.
The first investors had become so rich that they quit their jobs. But unfortunately for them they couldn’t start working much later.
‘The First Strike’
Maximiliano Firtman, a hobbyist in the field of uncovering fraud cases, examined Rainbowex’s code exactly. He found that no trades were carried out at all.
Everything was fake! The profits were simply typed by Rainbowex employees. In order to enlarge the number of victims, payments with the funds of the fraudsters were actually made at the beginning. So it remained credible and lucky guys attracted more people to ‘act’. Or actually to be cheated. Firtman was just in time before this Ponzi card house would collapse.
On October 1, 2024, FIRTMAN talked about his findings on national radio. Four days later, the local news was hesitant. On October 5, it was called a pyramid game and shortly afterwards the findings about the exposed Polish actors were communicated in the largest newspaper in Argentina.
‘The newspapers did that!’
After all this news, Rainbowex blocked the lifting of money. You could still pay for 88 Tether to migrate to another side, but also disappeared this money.
The cheated investors were angry – the newspapers! Rumors were around that the journalists wanted to make money with the Rainbowex case. The newspapers would be the real fraudsters! This was followed by death threats to the media platforms. Suddenly it had become a conspiracy counter.
A reaction like this can still be understood with a little empathy. People lost an average of $ 2,000, but some of them were rid of hundreds of thousands. They were angry and La China was not in sight to revise herself, but the newspapers already.
$ 46 million of stable crypto
The prosecutor has already arrested some people and charged with fraud. 46 million tether (a stable cryptocurrency that is worth exactly one dollar) have disappeared and only 3.5 million were confiscated. The actors turned out to be a real actor Cam how this have as a normal source of income.
Rainbowex’s software turns out to be a copy of Chinese software from 2021, which travels around the world and gets a different name every time. More than 200 platforms were created with this software and in Italy there was also a figure called “Dolly”. The Italian equivalent to La China.
One thing is certain: San Pedro will never be the same after this drama.