Argentine Prosecutor Moves to Freeze $110M in LIBRA Crypto Investigation

Prosecutors aim to freeze $110M in assets linked to LIBRA token insiders following allegations of an insider-driven rug pull.

Investigators are requesting international cooperation to trace cryptocurrency transactions and identify individuals involved in fund transfers.

Over 86% of LIBRA investors suffered financial losses, with blockchain analysts reporting total realized losses of approximately $251 million.

Federal Prosecutor Eduardo Taiano is pursuing legal measures to freeze assets worth up to $110 million as part of an investigation into President Javier Milei’s alleged connection to the LIBRA cryptocurrency scandal. The probe focuses on financial transactions related to the Solana-based memecoin and efforts to track insider trading activities.

Authorities Target Digital Wallets and Deleted Social Media Posts

Prosecutors have requested access to deleted social media posts in which Milei allegedly promoted LIBRA. Investigators are examining the token’s trading volume spike on February 14-15, a period marked by unusual price movements. Additionally, Taiano has moved to freeze digital wallets linked to the scandal, aiming to prevent further movement of funds.

Authorities have issued requests to foreign cryptocurrency exchanges to uncover fund movements tied to the case. Blockchain analysts identified at least eight wallets connected to LIBRA insiders that liquidated around $107 million before the token’s sharp decline. Investigators recently flagged a $4.5 million transfer from one of these wallets, some of which was reportedly used to acquire another memecoin, POPE, raising concerns of potential money laundering.

Taiano’s team has requested phone logs and visitor records from the presidential office and residence to track potential communications related to the scandal. Authorities are also compiling a list of blockchain experts and individuals within Milei’s circle who could provide insights into the financial transactions.

The LIBRA token surged to a $4.5 billion market capitalization on February 14 before plummeting by more than 90%, triggering allegations of an insider-driven rug pull. The controversy, referred to as “Libragate,” has intensified political pressure on Milei, with opposition leaders calling for his impeachment. The allegations have complicated his political standing ahead of this year’s congressional midterm elections.

On-Chain Analysis Shows Widespread Investor Losses

Blockchain analytics firm Nansen reported that over 86% of traders who engaged with LIBRA meme coin suffered losses exceeding $1,000, with total realized losses reaching $251 million. The findings suggest that a significant portion of investors fell victim to what appears to be a pump-and-dump scheme orchestrated by insiders.

Hayden Davis, CEO of Kelsier Ventures, and Julian Peh, CEO of KIP Protocol, have been identified as central figures in the LIBRA token launch. Reports indicate that Davis and Kelsier Ventures profited approximately $100 million from the token’s surge.

Davis maintains that he does not personally hold LIBRA tokens and has no intention of selling them. Meanwhile, Argentine media reports suggest that Milei’s sister, Karina Milei, may have been involved in the scandal, a claim denied by Davis.

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