Argentine Prosecutor Seeks $110M Asset Freeze in LIBRA Crypto Scandal

Argentine President Javier Milei-linked LIBRA scandal has taken a sharp turn, with Federal Prosecutor Eduardo Taiano seeking to freeze up to $110 million in assets. Local media outlet Clarín reported that authorities are also attempting to recover deleted social media posts in which Milei promoted the Solana-based token.

Investigators Target Deleted Posts and Wallet Movements

Taiano ordered a detailed reconstruction of all LIBRA transactions, focusing on financial movements during February 14-15, when the token’s trading volume peaked. Eight wallets identified as insiders reportedly cashed out a staggering $107 million before LIBRA collapsed.

Meanwhile, investigators tracked $4.5 million recently transferred from a wallet tied to the scheme, some of which was used to buy another memecoin, POPE, raising money laundering concerns.

To prevent further fund dispersal, authorities have begun freezing identified digital wallets and have also drafted international legal requests to access records from foreign cryptocurrency exchanges. Additionally, Taiano has demanded phone records and visitor logs from both the presidential residence and office, aiming to uncover potential links between Milei’s inner circle and the memecoin’s creators.

LIBRA Scandal Sparks Political Crisis for Milei

The LIBRA scandal, now referred to as “Libragate”, has created a significant political headache for President Milei. Initially touted as a project aimed at supporting Argentine small businesses and startups, LIBRA quickly turned into a pump-and-dump scheme.

After reaching a market capitalization of $4.5 billion on February 14, the token plummeted over 90% in less than 12 hours, leaving investors reeling and fueling accusations of insider trading.

Milei has denied any wrongdoing. In February, he dismissed allegations that he had promoted the memecoin, claiming he merely “spread the word.” However, critics argue that his social media endorsement played a key role in driving retail investors into what now appears to be a fraudulent scheme.

With midterm congressional elections approaching, the scandal has significantly dented Milei’s popularity and could jeopardize his political alliances, according to a February report by Reuters.