Account Freezes and Evidence Hunt: LIBRA Investigation Gains Momentum

Authorities are exploring more than just blatant fraud; they’re also digging into accusations of rigging financial markets, particularly since a few individuals reportedly took home $110 million. The current investigative thrust is gathering digital proof, retrieving deleted social media content, and scrutinizing all memecoin-associated financial trails.

Where the LIBRA Investigation Stands

Taiano has required an in-depth analysis of all LIBRA transactions, giving special priority to activities on February 14 and 15—the memecoin’s busiest phase. Because some participants relied on encrypted digital wallets, identifying them poses a challenge. To curb any additional asset transfers, the prosecutor has already filed for the suspension of high-risk digital addresses.

Check this out: Blockchain Serving the Law: Police and Chainalysis Join Forces

Investigators are also striving to recover a tweet posted (and later removed) by President Milei on February 14, in which he promoted the memecoin. This endorsement apparently drew significant investor attention and triggered LIBRA’s impressive rise in market capitalization. Its content is pivotal in assessing how deeply the president was involved in the affair.

International support is another key focus for investigators. Taiano has officially requested data from foreign crypto platforms and financial institutions used by the alleged suspects and suspect wallets. The aim is to gather more detailed transaction records and enforce asset freezes on an international scale.

Ripple Effects on Politics and the Economy

The LIBRA debacle has ballooned from a financial scandal into a major political storm. By posting a tweet promoting the token’s smart contract, President Milei found himself thrust into the limelight of both loyal backers and fierce critics. Although he deleted the tweet in short order, investigators uncovered direct evidence that his public endorsement heavily influenced the memecoin’s performance.

Opposition figures are now clamoring for Milei’s impeachment, accusing him of involvement in a fraudulent scheme. His inner circle rejects these claims, citing a misunderstanding in the presidential communications strategy. Observers point to Hayden Davis, director of Kelsier Ventures, as the individual responsible for leading Milei to inadvertently endorse the suspicious token. 

As reported by English-language outlets, he was the main architect behind the project’s inception and publicity, previously advising Milei while collaborating with the presidential administration. Most notably, he confessed to holding more than $100 million worth of stablecoins—proceeds from LIBRA’s launch—though he claims he has yet to figure out how to handle them.

A worthwhile read: LIBRA Token Scandal: Did Argentina’s President Milei Back a Meme Coin?

Public reaction to the scandal has been loud and unequivocal, thrusting Argentina’s approach to cryptocurrency regulation back into the spotlight. Now, with a criminal probe underway, both the Central Bank and the Securities Commission find themselves under scrutiny, as investigators assess any possible misconduct or bribe-taking within these institutions.

Where Does It All Go From Here?

With the investigation still in progress, Argentina’s rules around cryptocurrencies could be on the verge of a major overhaul. If the accusations stick, it won’t just be crypto businesses facing the heat—government officials might be in the crosshairs, leading to a heavier clampdown on digital assets. Many experts are calling it a landmark episode, one that could set a precedent for other countries grappling with fast-growing crypto sectors and outdated laws.

The final ruling is still a long way off, and in the meantime, new revelations are likely to emerge about who’s responsible, what happened to the money, and how deeply each person is involved. No matter the end result, this scandal has already rocked Argentina’s perception of cryptocurrency and shaken faith in the ruling party—president included.

Read on: Argentina Investigates El Salvador’s Bitcoin Integration Strategy