An Argentine federal prosecutor is seeking to freeze up to $110 million in assets as part of an investigation into President Javier Milei’s alleged involvement in the LIBRA cryptocurrency scandal.
Federal Prosecutor Eduardo Taiano has also requested access to deleted social media posts, including those in which Milei allegedly promoted the Solana-based memecoin, according to a report by local outlet Clarín.
Investigators aim to reconstruct financial transactions related to LIBRA, particularly around February 14-15, when the token’s trading volume surged.
Argentine Prosecutor Moves to Freeze Digital Wallets Tied to Crypto Scandal
As part of the probe, Taiano has moved to freeze digital wallets linked to the scandal, preventing further dispersal of funds.
He has also initiated international requests for data from foreign cryptocurrency exchanges to track fund movements.
The controversy erupted after blockchain analysts revealed that at least eight wallets linked to insiders from the LIBRA team cashed out approximately $107 million before the token’s price collapsed.
Investigators recently identified a $4.5 million transaction from one of these wallets to a new address, with some of the funds reportedly used to purchase another memecoin, POPE—raising suspicions of potential money laundering.
In addition to financial records, the prosecutor has requested phone logs and visitor records from the presidential office and residence.
Authorities are also compiling a list of blockchain experts and individuals in Milei’s close circle who may have insight into the transactions.
The scandal, dubbed “Libragate” in Argentina, has fueled calls for Milei’s impeachment.
The LIBRA token initially soared to a $4.5 billion market capitalization on February 14 before crashing by over 90% within hours, triggering allegations of an insider rug pull.
Milei has denied any wrongdoing, claiming he merely “spread the word” about the token rather than actively promoting it.
However, the controversy has tarnished his public image and complicated his efforts to build political alliances ahead of this year’s congressional midterm elections, according to Reuters.
Over 86% of Libra Meme Coin Traders Sold at a Loss
As reported, on-chain analysis has revealed that the majority of Libra meme coin investors suffered significant losses in what appears to be a classic pump-and-dump scheme.
According to blockchain analytics firm Nansen, over 86% of traders, amounting to 15,430 wallets that traded with gains or losses exceeding $1,000, sold at a loss.
The combined realized losses reached a staggering $251 million.
Central figures behind the LIBRA token launch include Hayden Davis, CEO of Kelsier Ventures, and Julian Peh, CEO of KIP Protocol.
Davis and Kelsier Ventures reportedly profited approximately $100 million from the token’s launch, though Davis insists he does not directly hold the tokens and has no plans to sell them.
Local media outlet La Nación reported that messages allegedly implicating Milei’s sister, Karina Milei, might indicate further involvement—claims denied by Davis.
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