Argentine Prosecutor Moves to Freeze $110M in Crypto Assets Tied to LIBRA Scam

Argentine federal prosecutor Eduardo Taiano is actively seeking to freeze about $110 million in crypto assets linked to the Libra memecoin scam. The scandal surrounding the project drew considerable attention due to the alleged involvement of the country’s president Javier Milei. 

Last month, President Javier Milei promoted the Solana meme coin Libra on his X page. Following his endorsement, the token’s fully diluted market cap surged to over $2 billion in market capitalization before crashing dramatically, losing over 90% of its value. The token has a current FDV of about $100 million, according to DexScreener.

Prosecutor Seeks to Freeze Assets Linked to the Memecoin 

According to a local media report, prosecutor Taiano has launched a new phase in the investigation into the memecoin scandal, aiming to clarify alleged crimes of fraud, bribery, and influence peddling. He has ordered the recovery of deleted social media posts, including those made by Milei promoting the Solana-based memecoin. 

To reconstruct the financial operations conducted around February 14 to 15, when the memecoin’s trade volume was highest, he has also requested detailed records of all LIBRA transactions since it launched. 

Although Milei deleted his initial endorsement of the token, at least eight wallets were identified as insiders linked to the Libra team who managed to profit significantly before the token crashed. Therefore, Taiano has requested the freezing of these identified digital wallets to prevent fund dispersal. 

Per the report, investigators have already identified a recent movement of about $4.5 million from a wallet connected to the controversy to a new address, with some funds used to purchase a meme coin called POPE. This move suggests an attempt to launder the funds. 

In addition, the prosecutor is also seeking cooperation from international crypto exchanges to access transactional information vital to the investigation. He has also requested phone records and visitor logs from both the presidential residence and office while compiling a list of blockchain experts and people close to the presidential circle who might have relevant information. 

Libra Memecoin Scandal

The controversy surrounding the Libra memecoin ignited a political firestorm in Argentina, with opposition figures calling for Milei’s impeachment, arguing that his endorsement misled investors. 

Many labeled it an insider scam, questioning the role of government officials in cryptocurrency endorsements. Milei, however, has refuted claims of promoting the memecoin and denied any connection to the entity behind the token.