Argentine police have busted a cryptocurrency fraud and money laundering ring involving over $1.2 billion.

According to Odaily, Argentine police, in a coordinated operation with the Ministry of National Security and the Federal Investigation Department (DFI), have dismantled a criminal organization that used cryptocurrency for fraud and money laundering.

Argentine authorities have confirmed that the organization has caused economic losses exceeding 1.8 trillion Argentine pesos, or about US$1.2 billion, with the main victims concentrated in the agricultural sector.

The case began in October 2025 when the Functional Investigation and Trial Department N.º 3 of the Pergameno Department of Justice in Buenos Aires Province, together with the Cybercrime Department and the Organized Crime Intelligence Department, began investigating a series of repeated operations suspected of fraud and money laundering.

Investigators determined that the group used forged documents to open bank accounts at different branches of private banks. The individuals then used these accounts to obtain loans and immediately transferred the funds to cryptocurrency company accounts.

Security forces believe that the individuals involved subsequently transferred the funds to other platforms within the same industry, converted them into virtual assets, and then transferred them to digital wallets.

To conceal their operations, the organization used third-party personnel to masquerade as cryptocurrency arbitrage. Furthermore, authorities confirmed that none of those involved were registered with the Virtual Asset Service Providers (PSAVs) required by the Argentine National Securities Commission.

The judicial authorities issued information disclosure orders to the branches of the banks involved, thereby identifying several victimized companies, all of which were related to agricultural and industrial activities.

Judge César Alejandro Solazzi and Secretary María Alicia Clerc of the Pergamene Judicial Department Guarantee Court N.º 1 ordered eight searches, two in the municipality of Buenos Aires, four in the province of Buenos Aires, and two in the province of Santa Fe.

Three men were arrested in the operation, and two others were notified to participate in the investigation. Police also seized cash, cell phones, USB drives, storage devices, laptops, bank cards, and documents. The Pergamene Federal Operations Unit (DUOF), Santa Fe Provincial Police, and the 4th Police Department of Filmate City assisted in the operation.

This case is one of several criminal crackdowns related to cryptocurrency use in Argentina in 2025. CriptoNoticias reports that in late July, the Financial Information Service (UIF) ordered the freezing of cryptocurrency-related virtual wallets and accounts after discovering potential links to international terrorist financing networks.