Argentina’s Federal Police (PFA) have arrested members of a crypto hacking group that fraudulently obtained hundreds of thousands in digital currency loans from a crypto exchange Buenbit. The exchange is based in Argentina, with operations in other Latin American nations, including Mexico and Peru.
Crypto Loans Exploited
Buenbit started offering crypto loans barely nine months ago, which allowed users to borrow up to one million in Argentine peso-backed stablecoin nuARS. Provided they supply 80% of the requested amount in DAI stablecoin as collateral. The police said the gangs used bots to mass produce fabricated loan applications, using only a particular virtual wallet as a guarantee. In doing so, they reportedly took up to $800,000 from the exchange. Four group members were arrested yesterday across Buenos Aires Province. The police also said it seized debit cards, 15 mobile phones, a notebook computer, flash drives, and three tablets during the raids, which helped dismantle the hackers’ operations.
Scam Group Led by 19-Year-Old
The leader of the group remains at large. According to reports, the leader is allegedly a 19-year-old suspected to have fled to France with an undisclosed amount of the stolen funds. The police said an international warrant might be required to detain and deport the leader to Argentina. Elsewhere, the founder of the exchange co-founder Federico Ogue, stated that the situation is “something unfortunately common and everyday for all companies in the fintech world.” Orgue also said, “the fraud had no impact on our customers’ balances or the company’s operations.” Buenbit is among the leading cryptocurrency firms in Argentina. In 2021, the company raised $11 million in Series A to expand its operation across the Latin American region. Before the FTX crash, the exchange also had plans to raise fresh capital in Q3 of 2022, and even more in 2023.
