Argentine authorities pursue asset freezes in ongoing Libra memecoin debacle

Argentine authorities are ramping up their probe into the collapse of LIBRA, a Solana-based memecoin, with prosecutor Eduardo Taiano leading efforts to track transactions and freeze associated assets.

According to local reports, the investigation aims to identify individuals who profited from the token’s rise and fall and determine whether any illicit activities, such as money laundering, occurred.

Taiano has requested international access to transaction records, mainly focusing on Feb. 14 and 15, when LIBRA reached its peak valuation of more than $4 billion.

While the total trading volume is known, the anonymity of blockchain transactions has kept the wallet owners’ identities concealed. However, the prosecutor has identified some addresses and is pushing for asset freezes to prevent fund movement during the ongoing investigation.

Meanwhile, the inquiry also extends to deleted social media posts, including a tweet from President Javier Milei that endorsed the project. Taiano seeks phone records and visitor logs from the president’s residence to examine potential connections between officials and LIBRA’s backers.

The investigation also aims to uncover whether government figures played a role in LIBRA’s promotion or collapse and whether those with privileged information misled investors.

LIBRA’s downfall

LIBRA gained prominence last month when President Milei publicly endorsed it, drawing attention to its key backers, including Hayden Davis’ Kelsier Ventures.

However, the project quickly unraveled amid allegations of insider trading and market manipulation. On-chain data suggests that insiders withdrew approximately $107 million before the token crashed.

Blockchain analytics firm Nansen further revealed that 86% of traders suffered collective losses of $251 million, while a smaller group secured $180 million in profits.

Milei later deleted his social media post, claiming he had no prior knowledge of LIBRA’s details and sought to distance himself from the controversy. However, by that time, significant financial damage had already been inflicted.

The opposition has condemned the scandal, branding it a national embarrassment and calling for Milei’s removal from office.

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