A federal prosecutor in Argentina is taking action to freeze up to $110 million in assets as part of an ongoing investigation into President Javier Milei’s alleged connection to the LIBRA cryptocurrency scandal.
Federal Prosecutor Eduardo Taiano has requested access to deleted social media posts, including those where Milei reportedly promoted the Solana-based memecoin. Authorities are now piecing together financial transactions related to LIBRA, particularly those made around February 14-15, when the token’s trading volume saw a dramatic spike before crashing.
Cracking Down on Digital Wallets
As part of the probe, Taiano has initiated moves to freeze multiple digital wallets tied to the scandal to prevent any further fund transfers. Additionally, international requests have been sent to foreign cryptocurrency exchanges to trace the movement of funds linked to the case.
The controversy escalated after blockchain analysts revealed that at least eight wallets connected to LIBRA insiders cashed out approximately $107 million just before the token’s price collapsed. Investigators recently traced a $4.5 million transaction from one of these wallets to a new address, some of which was reportedly used to buy another memecoin, POPE—raising concerns over potential money laundering.
Phone Records, Presidential Logs Under Scrutiny
To further the investigation, the prosecutor has also requested phone records, visitor logs from the presidential office, and a list of blockchain experts or close associates of Milei who might have insight into the financial transactions.
Dubbed “Libragate” in Argentina, the scandal has fueled impeachment calls against the president. The LIBRA token had initially surged to a $4.5 billion market cap on February 14, only to plummet by over 90% within hours—triggering accusations of insider trading and a classic “rug pull” scheme.
Milei Denies Wrongdoing, But Questions Persist
President Milei has denied any direct involvement, insisting he merely “spread the word” about LIBRA rather than actively promoting it. However, the controversy has significantly damaged his public image, raising doubts about his political credibility ahead of this year’s congressional midterm elections.
Most Investors Lost Big
On-chain analysis reveals that 86% of traders—approximately 15,430 wallets—sold LIBRA at a loss, with total realized losses exceeding $251 million.
Prominent figures behind LIBRA’s launch include Hayden Davis, CEO of Kelsier Ventures, and Julian Peh, CEO of KIP Protocol. Reports suggest Davis and Kelsier Ventures personally profited around $100 million from the token’s launch. However, Davis has denied direct ownership of the tokens and insists he has no intention of selling them.
To add another twist, local media outlet La Nación reported that messages allegedly implicating Milei’s sister, Karina Milei, have surfaced—though these claims have been denied by those involved.
With international authorities now stepping in, the LIBRA scandal is far from over. The coming weeks could reveal more as prosecutors dig deeper into Argentina’s most controversial crypto case yet.
