The federal judge of San Nicolás, Carlos Villafuerte Ruzo, ordered the National Communications Entity (ENACOM) to “urgently” block access to the websites of the financial trading platform called “RainbowEX” and/or “Knight Consortium”, that is being investigated, in federal jurisdiction, for the possible crime of unauthorized financial intermediation and, in the provincial criminal jurisdiction, for possible pyramid schemes, in the Buenos Aires city of San Pedro.
The measure was adopted in line with a proposal made yesterday to the judge by the federal prosecutor Matías Felipe Di Lello, in charge of the Decentralized Fiscal Headquarters of San Nicolás, and the attorney general Horacio Azzolin, head of the Specialized Fiscal Unit in Cybercrime (UFECI). ) of the Attorney General of the Nation.
The opinion of the representatives of the MPF
In substantiating their request, Di Lello and Azzolin recalled that “the National Securities Commission (CNV) reported that the aforementioned companies ‘are not registered in the Registry of Virtual Asset Service Providers -Legal Entities- and have not submitted a request either. registration therein.”
“Despite this, the services continue to be offered to the general public, mainly through two sites,” The prosecutors warned, and added: “Faced with this panorama, in order to prevent the crime from having further consequences, we understand that access to the sites must be restricted to the general public, at least in our country, despite the fact that the infrastructure of both, according to queries whois (protocol that allows consulting a database to establish the owner of a domain name) carried out by the UFECI is set up outside the Argentine Republic.
The “RainbowEX” site of the platform investigated for possible scams in San Pedro. Photo: Screenshot incorporated into the case.
The judge’s resolution
In endorsing the prosecutors’ proposal, Villafuerte Ruzzo pointed out in his resolution that “as it emerges from the incipient investigation, and according to the estimates made by the Municipality of San Pedro, the maneuvers investigated would have involved the raising of funds of approximately 20 % of the population of that town, on a platform that does not have authorization from the CNV to operate in exchanges in the Argentine Republic […]having even recently held an event at the ‘Emperador’ Hotel in the Autonomous City of Buenos Aires, which suggests the intention of its executors to expand the maneuver throughout the country.”
“Faced with this panorama, I agree with the tax representatives that it is necessary, at least in these first instances, to take the necessary measures aimed at preventing the possible crime under investigation from reaching further consequences,” said the judge when ordering “restricting the access of the general public to said sites.” In addition, he added that he adopts this resolution “without prejudice to other measures that may be adopted in the future and as the investigation carried out by the federal prosecutor’s office progresses.”
Letter to ENACOM
After the resolution, Judge Villafuerte Ruzzo sent a letter addressed to the ENACOM controller, notifying him of the order to “urgently order the blocking of access to the sites https://www.knightconsortium.com/; https://h5.rainbowex.life/#/ and (https://h5.rainbowex.life/#/pages/download/download), requesting that you communicate it to all representatives of the chambers, associations and other linked entities to the provision of internet services in the country so that they can execute it, directly or through their associates.”
Preliminary investigation
Last Tuesday, the Decentralized Fiscal Headquarters of San Nicolás began a preliminary investigation, the purpose of which is limited to elucidating the alleged criminal relevance of the events reported based on the recent publications of journalistic notes, which account for the possible configuration of maneuvers that would constitute the crime of unauthorized financial intermediation, under the terms of article 310 of the Penal Code, although possible money laundering is also analyzed as a hypothesis.
“The maneuvers investigated would have involved the raising of funds from approximately 20% of the population of that town, on a platform that does not have authorization from the CNV to operate in exchanges in the Argentine Republic”noted the judge.
In the journalistic reports it is noted that approximately 20% of the population of San Pedro, province of Buenos Aires, would be operating with a “trading platform” called “RainbowEX” and/or “Knight Consortium”, consisting of the investment of dollars in the purchase of cryptocurrencies – which would turn out to be non-existent -, where profits of between 1 and 2 percent daily in that foreign currency are promised.
Likewise, the various publications report that the visible figure behind the platform is a woman known as “The China Ali” and/or “LY” and that through messages sent from the Telegram instant messaging application, it would be responsible for sending “signals” daily to the various users to buy and sell cryptocurrencies at a specific time.
It is also referred to as the object of the investigation that “Knight Consortium” would be the organization behind the platform in which a reference arises whose data is unknown, for the moment, although he would be a native of San Pedro. That person would manage a group on the Telegram application, where they would share information about investments and/or operations on the platform.
One of Di Lello’s first measures was to send letters to the CNV that informed the prosecutor’s office that the financial platform involved was not registered with that entity, which reinforces the hypothesis of the possible configuration of the crime of unauthorized financial intermediation.
Source: Ambito
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