Argentine prosecutor aims to freeze assets in LIBRA memecoin fraud case

The lead prosecutor investigating Argentine President Javier Milei’s alleged involvement in the LIBRA cryptocurrency scandal has requested the freezing of as much as $110 million in assets. 

Argentine Federal Prosecutor Eduardo Taiano has also requested the recovery of deleted social media posts, including those made by Milei promoting the Solana-based memecoin, according to local media outlet Clarín.

He also requested detailed records of all LIBRA transactions since it launched with the aim of reconstructing financial operations conducted around Feb. 14 to 15, when the memecoin’s trade volume was highest. 

Taiano has requested the freezing of identified digital wallets to prevent fund dispersal and drafted international requests to access information from foreign cryptocurrency exchanges, the report added. 

Despite Milei deleting his initial endorsement, at least eight wallets identified as insiders linked to the Libra team managed to cash out as much as $107 million before the token crashed, according to data shared by the Kobeissi Letter.

Investigators have already identified a recent movement of $4.5 million from a wallet connected to the scandal to a new address, with some funds used to purchase a memecoin called POPE, potentially as an attempt to launder the funds speculated Clarín. 

The prosecutor has requested phone records and visitor logs from the presidential residence and office while creating a list of blockchain experts and people close to the presidential circle who might have relevant information.

Related: Argentina’s crypto adoption hopes dim after Milei’s LIBRA memecoin scandal

Libertarian Milei faced calls for impeachment after endorsing the memecoin that was allegedly created to help fund Argentine small businesses and startups. 

The Libra token briefly rose to a peak market capitalization of $4.5 billion on Feb. 14 before tanking over 90% in less than 12 hours, sparking accusations of an insider rug pull and the consequent lawsuits and federal investigation. 

Milei refuted claims that he promoted the memecoin, stating in February that he merely “spread the word.” 

The scandal, dubbed locally as “Libragate,” has dented Milei’s popularity and hindered his efforts to strengthen political alliances ahead of congressional midterm elections this year, reported Reuters in late February. 

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