Bitcoin Exchange is blocked in Argentina

The Argentine authorities have ordered the total blockade of the website and the mobile application throughout the country of HTX, the cryptocurrency exchange of Chinese origin previously known as Huobi.

The measure responds to the refusal of the platform to collaborate in an investigation for fraud, since they did not provide information about the head of a wallet linked to the case.

The measure was will. As it transpired, the Exchange did not respond to the information requirements linked to the fraudulent scheme under investigation, which motivated an unprecedented sanction in Argentina.

HTX operates in Argentina since 2021allowing local users to have their accounts with pesos. However, it is not registered with the National Securities Commission (CNV) as a provider of virtual asset services (PSAV), a legal requirement in force in the southern country.

The conflict originated in 2022, from the complaint of a victim who lost around $ 13,000 (USD). Local media reported that The deception would have been perpetrated through a modality known as “Pig Butchering” (“Pork cut”).

Such modality combines emotional manipulation with false promises of profitable investments to induce victims to transfer funds to non -existent schemes. In this case, the initial contact was established from the United Kingdom, under the pretext of hiring a tourist service.

The investigation of the prosecutor Alejandro Musso managed to track the movements of the money to a Wallet that received funds from a direction linked to HTX. Subsequently, It was discovered that this wallet was related to other similar scams and the collapsed Rainbowex pyramid schemewhich operated in the town of San Pedro (city in Argentina).

Despite the attempts of the Prosecutor’s Office for accessing the identity verification data (KYC) of the head of the wallet involved, HTX refused to provide that information. Failure to comply with this obligation was decisive for judicial resolution.

As Cryptonotics reported, Law 27,739 requires that all exchanges operating in Argentina register as PSAV and collaborate with authorities in investigations related to financial crimes.

However, sector specialists have warned to the local press that the effectiveness of the blockade could be limited, since Users with technical knowledge can still access the platform through the use of VPNS or proxies.

From the Judiciary they point out that they evaluate more severe measures against other platforms that fail to comply with the legal requirements. It is not ruled out to request the revocation of operation licenses to those firms that, even registered as PSAV, do not cooperate with judicial requirements.

To avoid falling into fraud such as “pig butchering, It is essential to distrust investment offers that promise fast and safe profitsespecially if they come from unknown contacts or through social networks. Before transferring money, it is recommended to verify the reputation of the platforms and people involved, not share sensitive personal data and consult official sources or ask for professional advice.