San Pedro, a small agricultural town in Argentina’s Buenos Aires Province, is currently facing a wave of scrutiny over alleged cryptocurrency trading scams. A digital currency platform in the area, which attracted more than a third of the local population—around 20,000 residents—promised high returns on investments. On September 9th, the platform announced a two-week suspension of withdrawal services as part of a government investigation.
According to La Nacion, the cryptocurrency platform promised a daily return of 1% to 2% in U.S. dollars, leading many residents of San Pedro to invest their savings. Some individuals even sold their cars or took out loans to increase their investments.
Given Argentina’s history of economic instability, locals often convert their salaries and savings into U.S. dollars. With the rise of cryptocurrency, this trend has shifted to digital deposits.
San Pedro, known for its citrus, fruit, and vegetable farming and home to about 70,000 residents, has seen many of its inhabitants turning their attention to high-yield messages on mobile apps like Telegram for trading, rather than relying on traditional farming cues such as weather forecasts.
In a statement on September 9th, the cryptocurrency platform claimed that Argentine regulatory authorities were intervening due to “misleading reports” from local media. The platform stated that if it could no longer operate, it would create a plan for returning funds but simultaneously accused the media of exaggerating fraud claims that were affecting its operations.
While some residents expressed trust in the cryptocurrency investment platform, a government investigation revealed that the platform was not formally registered. It was discovered that both the company’s representatives and traders were hired actors. This led the Argentine Supreme Court to classify the case as an investigation into a major Ponzi scheme.
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