TLDR
- Argentine federal prosecutor Eduardo Taiano is intensifying investigation into $LIBRA cryptocurrency scandal involving President Javier Milei
- Authorities seek to freeze up to $110 million in assets linked to the alleged fraud scheme
- Investigators identified $4.5 million moving from wallets connected to the scandal, possibly for money laundering
- The prosecutor is requesting recovery of deleted social media posts, including Milei’s promotion of the token
- LIBRA’s value collapsed by 90% within hours after reaching $4.5 billion market cap, wiping out millions in investments
Argentine federal prosecutor Eduardo Taiano has ramped up his investigation into the $LIBRA cryptocurrency scandal. The case involves President Javier Milei and allegations of fraud, bribery, and influence peddling. Taiano is now seeking to freeze assets worth approximately $110 million linked to the controversial digital token.
The investigation centers on a Solana-based memecoin that was promoted by President Milei in February. Milei used his social media platform to endorse $LIBRA. He described it as an initiative to support small businesses and boost economic growth in Argentina.
This presidential endorsement caused a rapid spike in the token’s value. Thousands of investors rushed to purchase the cryptocurrency. They were eager to invest in what appeared to be a government-backed project.
However, the situation quickly turned sour. Within just 12 hours of reaching a peak market capitalization of $4.5 billion, LIBRA’s value plummeted by more than 90%. This sudden collapse wiped out millions in investments and sparked widespread outrage.
Prosecutor Taiano has ordered the collection of detailed records for all transactions linked to $LIBRA since its launch. His team is working to identify who benefited from the profits. They are particularly focused on reconstructing financial activities that took place on February 14 and 15, when the trading volume peaked.
Digital evidence preservation has become a key part of the investigation. Authorities are attempting to recover deleted social media posts. This includes President Milei’s February 14 tweet promoting the cryptocurrency, which was later removed.
According to data shared by the Kobeissi Letter, at least eight wallets identified as insiders linked to the Libra team cashed out around $107 million before the token crashed. Tracking these funds has proven challenging due to the use of encrypted digital wallets.
It all began with this post at 5:01 PM ET from Javier Milei.
As seen during President Trump’s memecoin launch, the first hour was full of speculation:
Was this a hack or a real launch?
It turned out to be real as multiple other Argentinian politicians posted the news. pic.twitter.com/cL0ZQgxtCB
— The Kobeissi Letter (@KobeissiLetter) February 15, 2025
To prevent further dispersal of these funds, Taiano has requested the freezing of digital addresses identified in the investigation. He is also drafting international warrants to access information on transactions conducted through foreign cryptocurrency exchanges.
Following the Money Trail
Investigators have already spotted suspicious activity. They identified a recent movement of $4.5 million from one of the wallets associated with the scandal to a new digital address. Part of these funds were used to purchase another memecoin called POPE, which some interpret as a potential money laundering attempt.
The probe extends beyond just tracking the money. Taiano has requested phone records and visitor logs from both the Casa Rosada presidential office and the Olivos presidential estate. These records may help establish connections among those potentially involved in the scheme.
A list of witnesses is being compiled for the investigation. This includes blockchain and cryptocurrency experts as well as individuals close to the presidential circle who might have had prior knowledge of the scheme.
President Milei has pushed back against accusations. He stated in February that he merely “spread the word” about LIBRA rather than explicitly promoting it. This defense has done little to quell the growing scandal.
The controversy, locally dubbed “Libragate,” has damaged Milei’s popularity. It has also made it harder for him to build political alliances ahead of congressional midterm elections this year.
The legal framework for cryptocurrencies in Argentina is now under scrutiny. Investigators are looking for possible regulatory and supervisory failures regarding $LIBRA. They are examining actions by the Central Bank and the National Securities Commission related to its commercialization.
As the investigation continues, authorities are implementing various measures to understand LIBRA’s operation and its impact on financial markets. International cooperation will be crucial to access all relevant transaction data.
The case has raised concerns about cryptocurrency regulation in Argentina. It highlights potential risks when high-profile figures endorse digital assets that lack proper oversight and transparency.
