Argentine prosecutor aims to freeze assets in LIBRA memecoin fraud case

The investigation surrounding Argentine President Javier Milei and his alleged involvement in the LIBRA cryptocurrency scandal has entered a critical phase. Lead prosecutor Eduardo Taiano has taken decisive steps, requesting the freezing of approximately $110 million in assets associated with the case. This move is intended to mitigate any potential fund dispersal amid the ongoing scrutiny.

Taiano’s efforts are not merely limited to asset seizures. He has also sought the recovery of deleted social media posts, specifically those by Milei that promoted the Solana-based memecoin. According to the local media outlet Clarín, this action underscores the prosecutor’s determination to establish a comprehensive understanding of the events surrounding the token’s launch.

With the LIBRA token’s trading activity peaking around February 14 and 15, Taiano has demanded detailed records of all transactions during that critical period. His investigation includes the freezing of identified digital wallets, which he believes may hold funds linked to the alleged irregularities. To extend the reach of his investigation, he has drafted international requests to access information from foreign cryptocurrency exchanges.

Notably, despite Milei’s attempts to distance himself from the memecoin by deleting his initial endorsement, data compiled by the Kobeissi Letter reveals that at least eight wallets associated with members of the LIBRA project managed to cash out as much as $107 million before the token’s dramatic decline.

Moreover, investigators have traced a recent transaction involving $4.5 million from a wallet linked to the scandal to a new address, with some funds purportedly being used to purchase a memecoin called POPE—raising suspicions of potential money laundering, as suggested by Clarín.

The ramifications of this scandal extend beyond financial implications. Prosecutor Taiano is actively seeking phone records and logs from presidential residences and offices to piece together the timeline of events and interactions that may have taken place. He has also compiled a list of blockchain experts and individuals close to Milei who might provide additional insights into the scandal.

The LIBRA token had initially been positioned as a vehicle to support Argentine small businesses and startups. However, the project faced immediate backlash after its market capitalization soared to $4.5 billion on February 14, only to plummet by over 90% within mere hours. This sudden collapse has led to allegations of insider trading and a subsequent federal investigation into the matter.

Accusations against Milei have intensified, with many calling for his impeachment. Although the president has publicly denied promoting LIBRA, insisting that he only helped to “spread the word,” the fallout from the scandal—dubbed “Libragate”—has significantly impacted his standing with the electorate, complicating his aspirations to forge key political alliances ahead of upcoming midterm elections.

As the investigation unfolds, it becomes increasingly clear that the implications of the LIBRA scandal may have lasting effects on both Milei’s presidency and the broader landscape of cryptocurrency regulation in Argentina.